Santander Bank Limits Cryptocurrency Exchange Transactions – Find Out Why
Santander UK, the UK unit of banking giant Banco Santander, has placed restrictions on crypto transactions for its customers, including a £1,000 limit on individual transactions with crypto exchanges and a £3,000 limit on total monthly transactions.
In a note to customers on Thursday, the bank said that it will limit the amount customers can send when they identify the receiver as a cryptocurrency exchange. It cited increasing cryptocurrency fraud as the reason for the decision.
"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," the statement reads.
The limits, which will go into effect starting November 15, will restrict customers to a £1,000 limit per transaction, and a total limit of £3,000 a month.
"We’ll be making more changes to limit or prevent payments to crypto exchanges in the future, though we’ll always let you know before we make these changes," the bank added, ostensibly warning of even tighter restrictions that might be on the way.
Meanwhile, the bank mentioned that there won't be any restrictions on deposits from crypto platforms. "You can still get payments from cryptocurrency exchanges into your account."
Crypto Twitter Critcizes Santander UK
Members of Crypto Twitter lashed out at the bank for putting limits on their money. "Since when do they have the authority to tell you what you can and can’t do with your own money?" Twitter user Alesxius said.
Bitcoin enthusiast, podcaster, and author Layah Heilpern noted that the bank may completely ban deposits to crypto platforms in the future. “Remember, they only ban what threatens them. If this isn’t your signal to buy I don’t know what is…” she added.
Another Twitter user Brand, who said he is living in the UK and has several bank accounts, pointed out that British banks have been "slowly blocking/limiting crypto payments for over a year now."
As reported, in July 2021, London-headquartered multinational bank Barclays stopped payments to major crypto exchange Binance. Shortly after, Santander UK also banned its customers from sending payments to Binance.
The move came after the FCA told Binance's UK operations to stop providing financial activities in fiat on British soil, although the exchange claimed this would not affect British Binance.com customers, as the firm operates from the Cayman Islands.