• NatWest, a retail and commercial bank in the United Kingdom, is taking measures to protect customers from potential crypto losses by imposing daily and monthly caps on payments to cryptocurrency exchanges.
• The restrictions set a 1,000 British pound ($1,216) limit for daily transactions involving crypto exchanges and 5,000 GBP ($6,080) for 30-day payments.
• NatWest’s head of fraud protection emphasized the importance of self-custody in crypto to protect customers from scams.
Natwest Imposes New Crypto Restrictions
NatWest, a retail and commercial bank in the United Kingdom, has recently taken measures to protect customers from potential crypto losses amid Bitcoin hitting multi-month highs. On March 14, the bank introduced major restrictions on payments to cryptocurrency exchanges which include a 1,000 British pound ($1,216) limit for daily transactions involving crypto exchanges as well as a 30-day payment limit of 5,000 GBP ($6,080).
Protecting Customers From Losses
The latest restrictions by NatWest aim to help protect customers from losing “life changing sums of money,” with an increase in the number of scams using cryptocurrency exchanges being reason enough for such protective measures. NatWest’s head of fraud protection also warned investors against delegating storage of their assets to third party wallets as it can be risky if they do not have sole control over their cryptocurrency wallet.
Importance Of Self Custody In Crypto
Stuart Skinner – NatWest’s Head of Fraud Protection – stressed the importance of self custody when investing in cryptocurrencies and cautioned investors against handing over access or control over their wallet to any third parties. He noted that if one cannot set up or access their own wallet then it is likely to be a scam.
Risk Involved With Crypto Investments
Natwest highlighted that investments into cryptocurrencies are risky due to there being a significant amount of scams within the industry and advised investors who want lower risk investments should look elsewhere than digital assets.
In conclusion Natwest has put these new restrictions into effect with customers’ safety at heart in order ensure people do not lose life changing sums through cryptocurrencies due largely in part due to an increase in scams using digital assets. To further reduce risks involved with investing into cryptocurrencies they have stressed the importance of self custody when making such investments and warned against giving away access or control over ones wallet easily without fully understanding what they are getting themselves into first.