NatWest, a bank in the UK, has introduced measures to safeguard customers from potential losses in the volatile crypto market, especially with Bitcoin reaching new highs.
As of March 14, NatWest has enforced strict limits on payments to cryptocurrency exchanges, setting both daily and monthly caps on such transactions.
According to information provided to Cointelegraph, NatWest has capped daily crypto exchange transactions at 1,000 British pounds ($1,216) and set a 30-day limit of 5,000 GBP ($6,080).
The new restrictions are aimed at shielding customers from significant financial losses. The bank expressed concerns over the risks associated with crypto investments, citing the prevalence of scams in the industry.
Stuart Skinner, NatWest’s head of fraud protection, highlighted the importance of self-custody in managing crypto assets. He cautioned investors against entrusting their assets to third parties, emphasizing the need for exclusive control over one’s cryptocurrency wallet to avoid potential scams.
NatWest noted a surge in crypto scams exploiting the current financial uncertainties, using promises of high returns to lure unsuspecting investors. The bank highlighted the tactics employed by criminals to deceive investors into transferring funds to bogus exchanges under false pretenses.
To help customers safeguard their investments, NatWest advised against sharing private keys and recommended thorough research before making investment decisions. The bank also warned against falling for giveaway schemes, a common tactic used by scammers in the crypto space.
NatWest had previously halted all credit and debit card payments to the Binance crypto exchange in response to the prevalence of crypto investment scams in 2021.
The announcement coincides with Bitcoin’s rise above $26,000, driven by concerns over inflation and banking uncertainties in the US market. The surge in Bitcoin’s price has also been linked to the recent data indicating a 6% year-on-year increase in the US Consumer Price Index.
