The Web3 universe has experienced multiple scams and losses this year; it is no surprise that many companies are adjusting their policies to better protect their company and customers against fraudsters, hackers, and scammers.
Santander UK is the latest banking company to place limits on its crypto transactions. This news is shocking, with the people living in the UK raising their voices on Twitter about their feelings towards this action.
Announcing on November 3, 2022, the multinational banking group, Santander UK, stated that effective on November 15, all accounts with the bank will be limited to £3,000 monthly and £1,000 per transaction.
Santander UK further explained in its press release that there had been several cases of scams and fraud in the crypto industry. The company is looking inward to devise a method to curb the loss of its customer’s funds.
The company states that investing in crypto is “high risk” and will attract unwanted attention from cyber-criminals. Since the UK’s Financial Conduct Authority (FCA) has warned the people about the risk, Santander UK has taken it upon itself to protect its customers; and in doing this, placing a limit on crypto transactions is the feasible solution for now.
The UK financial institution did, however, state that although there is a limit on the amount to be transferred within the banking platform, customers are still allowed to receive payments that may transcend the stated fees.
What Is Santander UK?
Santander UK is a subsidiary of the Spanish global bank Banco Santander. Launched in the United Kingdom in 2004, the financial institution has grown from its traditional roots of being three former building services into a whole-service commercial and retail bank. Santander UK boasts 14 million active customers and 7 million digital customers.
Although the other branches of Banco Santander are in full effect with their crypto trade, Santander UK has no choice but to follow the United Kingdom’s financial sector’s regulations. The company believes limiting transactions on mobile cryptocurrency exchanges is the safest way to protect its customers from falling prey to fraud and scams.
The announcement on November 3 states that funds held in a client’s crypto wallets are not likely to be guarded by the Financial Ombudsman Service and Financial Services Compensation Scheme, should something go wrong. The company further mentions that to make sure the client’s money remains safe, placing a limit on the transactions is the best possible solution.
Henceforth, starting on November 15, 2022, all crypto transactions made on customers’ accounts will be limited to £1,000 per transaction and £3,000 monthly. Although, this does not affect the number of payments from cryptocurrency exchanges to be received by the customers.
The press release ends with a postscript notice suggesting more changes will be made to limit or avoid payments to cryptocurrency exchanges later. However, such details will be communicated to the clients when it happens.
Santander UK Ban on Binance
In its press release about limiting crypto transactions, the company also reiterates its decision to ban payments to the popular crypto trading platform, Binance. Santander UK says that in its bid to adhere to the FCA’s warning to users about protection against fraud, it will no longer allow transactions to be made into Binance.
However, customers can withdraw all funds and savings stored in Binance into their Santander account.
Shocking Crypto Scams In 2022
This year has experienced several scams and frauds in Web3. Here are a few scam attacks; which have left crypto investors and traders devastated.
1. Seth Green’s Bored Ape
Shortly after falling victim to a phishing scam in May 2022, the famous developer of Robot Chicken, the actor’s whole NFT collection, was stolen, including his BAYC #8398. The sum of the actor’s total loss amounts to hundreds of thousands of dollars which he was later able to buy back; at $297,000.
2. BBC Unknowingly Supports A Fraudster
Without checking for facts, BBC published an article about an alleged cryptocurrency investor, Hanad Hassan, who made millions after only investing £50. The report praised the investor as it mentioned plans that he had for the community with his success. This quickly turned sour as people rose to claim the same man had defrauded them.
Conclusion
To reduce the possibility of its clients falling victim to crypto frauds, the multinational banking group, Santander UK, has announced that it will limit transactions on crypto exchanges to ensure the safety of customer savings.
