UK Banks Crack Down on Crypto Purchases
In a move to protect customers from cryptocurrency fraud, UK banks are getting tougher on customers using crypto. Two of the country’s biggest banks, Nationwide and HSBC, have recently applied daily limits for buyers or restricted credit cards from making crypto purchases. Other banks have also taken a tougher stance over the past year, with some following the collapse of mega digital asset exchange FTX back in November.
According to most UK high-street banks with limits, the crackdown is to protect investors from cryptocurrency fraud. “We want to do everything we can to protect our customers and we feel that limiting payments to cryptocurrency exchanges is the best way to make sure your money stays safe,” Santander says.
So what are the current rules? Here is the low-down on which banks are crypto-friendly for the retail investor.
Nationwide has been offering a cryptocurrency service since 2020, allowing customers to buy and sell Bitcoin, Ethereum, and Litecoin. However, the bank has recently applied a daily limit of £1,000 for crypto purchases.
HSBC has also applied a daily limit of £1,000 for crypto purchases, and has restricted credit card purchases of crypto altogether.
Barclays has not applied any limits on crypto purchases, but has warned customers of the risks involved in investing in cryptocurrencies.
Lloyds Bank has not applied any limits on crypto purchases, but has warned customers of the risks involved in investing in cryptocurrencies.
NatWest has not applied any limits on crypto purchases, but has warned customers of the risks involved in investing in cryptocurrencies.
Santander has applied a daily limit of £1,000 for crypto purchases, and has restricted credit card purchases of crypto altogether.
Overall, it seems that UK banks are becoming increasingly cautious when it comes to cryptocurrency purchases. While some banks are still allowing customers to buy and sell crypto, they are doing so with strict limits and warnings of the risks involved. As the crypto market continues to evolve, it remains to be seen how UK banks will adapt to the changing landscape.
