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Santander limits crypto transactions for its UK customers

Friday 4 November 2022 13:38 CET | News

The UK branch of Santander has decided to limit cryptocurrency transactions for its users due to  cryptocurrency fraud warnings from regulators.

 

According to Santander officials cited by cointelegraph.com, the bank has implemented these limitations to protect its customers from the risks associated with investing in crypto assets. Santander officials highlighted that any money held in the crypto wallets of their customers is unlikely to be protected by the Financial Ombudsman Service and Financial Services Compensation Scheme if something goes wrong. 

The limit will come into effect on 15 November 2022, and it will involve a GBP 1,000 (USD 1,120) limit per transaction as well as a limit of GBP 3,000 (USD 3,360) per month. These limits will not restrict the ability of clients to receive payments from cryptocurrency exchanges in their bank accounts. 

In contrast, according to news.bitcoin.com, Santander-associated businesses are making progress toward tokenisation, commodity tokens, and cryptocurrency services in Brazil. Moreover, the Spanish bank has also crafted a Bitcoin exchange-traded fund in Spain. In the UK, however, Santander must operate under the United Kingdom’s financial laws, which means that Santander-associated businesses must adapt as well. 

Standander UK also has special restrictions when dealing with Binance. Officials cited by the same source stated that they’ll continue to stop payments being sent to Binance while allowing customers to withdraw any money they still have with Binance into their Santander account.

 

The UK branch of Santander has decided to limit cryptocurrency transactions for its users due to  cryptocurrency fraud warnings from regulators.

 

Other developments involving Santander UK

In October 2022, the UK Payment Systems Regulator (PSR) has proposed that all banks must reimburse within 48 hours customers tricked into sending money in a type of online scam. Some of the banks that will be affected by the new rule include HSBC, Natwest Group, Lloyds, Barclays, and Banco Santander, which are also UK’s largest commercial banks by the number of actives and customers. 

Several banks have taken the first steps into compliance by agreeing to check the name of the person being paid by a money transfer between banks. 

In August 2022, Santander UK has provided a new API-based payments product to British cashback platform TopCashback. 

The official press release informs that the Santander UK PaymentsHub API enables British cashback site TopCashback to submit payment instructions directly into the bank’s Faster Payments system. This allows it to provide its members with same-day cashback payouts. The process supports an improvement on the three to five days it previously took to process cashback payouts when it used the Bacs system. 


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Keywords: banks, cryptocurrency, fraud management, digital assets
Categories: DeFi & Crypto & Web3
Companies: Santander
Countries: United Kingdom
This article is part of category

DeFi & Crypto & Web3

Santander

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