NatWest, a prominent retail and commercial bank in the UK, has recently implemented restrictions on customers who use cryptocurrency exchanges to make payments.
This move follows similar measures taken by other banks in the country. The new limitations dictate that NatWest customers can only make cryptocurrency payments of up to £1,000 ($1,218) per day and £5,000 ($6,090) per month.
The bank cites client protection as the reason behind the new limits, which apply to both debit card transactions and transfers from customer accounts.
Last year, clients of NatWest lost a staggering £329 million ($400 million) due to crypto-criminals, according to the bank’s statement.
The bank spokesperson noted that criminals exploit the volatility of the cryptocurrency markets to their advantage, and that investors are often coerced into transferring funds to exchanges that are created by criminals posing as clients or victims.
The new restrictions imposed by NatWest come after British banks Nationwide and HSBC banned their customers from using credit cards to make payments on crypto exchanges.
These measures apply to both new and existing cardholders. Overall, the recent actions taken by these banks signal a growing concern about the security risks associated with cryptocurrency transactions.