NatWest, a UK retail and commercial bank, is taking action to protect customers from potential crypto losses as Bitcoin (BTC) hits multi-month highs.
On March 14, NatWest introduced greater restrictions on payments to cryptocurrency exchanges, imposing daily and monthly caps on such transactions.
According to an announcement shared with Cointelegraph, NatWest has set a £1,000 ($1,216) limit on daily transactions with crypto exchanges. The bank has also set a 30-day payment limit of £5,000 ($6,080).
NatWest’s recent restrictions aim to protect customers from losing “life-changing sums of money,” the bank said, adding that crypto investing is risky due to a significant number of scams in the industry.
“We have seen an increase in cryptocurrency exchange fraud and are acting to protect our customers,” said Stuart Skinner, head of fraud protection at NatWest. Emphasizing the importance of self-custody in crypto, the executive cautioned crypto investors against delegating custody of their assets to third parties, stating:
“You should always be in sole control of your cryptocurrency wallet and no one else should have access. If you didn’t set up the wallet yourself or you can’t access the funds, it’s probably a scam.”
According to NatWest, crypto scammers have increasingly benefited from the ongoing cost-of-living crisis due to promises of high returns.
“Criminals play on a lack of understanding of how cryptocurrency markets work and their unpredictability to encourage investors to transfer funds to exchanges, which are often set up in the criminal’s own name or the victim under duress from the criminal. ‘ said the bench. Men over 35 are most at risk as they are more willing to take the risk on their investments, the announcement said.
In the statement, NatWest also shared some steps to avoid becoming a victim of cryptocurrency fraud, including recommending never sharing its private keys with others. The bank also advised crypto investors to read all information slowly to avoid rushed investments and fake websites. NatWest also advised investors to beware of giveaways as one of the most widespread scams in the crypto space.
Related: Binance loses its on- and off-ramp British pound provider in 9 weeks
NatWest is known for cutting all credit and debit card payments to crypto exchange Binance in 2021. At the time, the company also cited high levels of crypto investment scams.
The news comes amid Bitcoin’s surge above $26,000, as United States Consumer Price Index (CPI) data indicated inflation was up 6% yoy and 0.4% mom. BTC price growth is also likely to reflect ongoing uncertainty over the collapse of major banks in the United States, including Silicon Valley Bank, Silvergate, and Signature Bank.
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