NatWest, a UK commercial and retail bank, is taking steps to protect its clients from potential cryptocurrency losses at a time when Bitcoin (BTC) is hitting multi-month highs.
March 14, NatWest introduced significant restrictions on payments to cryptocurrency exchanges, imposing daily and monthly limits on such transactions.
According to an announcement shared with Cointelegraph, NatWest has set a limit of 1,000 British pounds ($1,216) for daily transactions related to cryptocurrency exchanges. The bank has also imposed a 30-day payment limit of £5,000 ($6,080).
The latest NatWest restrictions are aimed at help protect clients from losing “significant sums of money”the bank said, adding that crypto investments are risky due to a significant number of scams in the industry.
“We have seen an increase in the number of scams using cryptocurrency exchanges and we are acting to protect our customers,” said NatWest’s head of fraud protection, Stuart Skinner. The executive stressed the importance of self-custody in the crypto space and warned crypto investors against delegating the storage of their assets to a third party, stating:
“You should always have sole control of your cryptocurrency wallet and no one else should have access to it. If you haven’t set up the wallet yourself or can’t access the money, it’s probably a scam.”
According to NatWest, cryptocurrency scammers have been increasingly capitalizing on the current cost of living crisis due to promises of high returns.
“Criminals take advantage of the lack of understanding of how cryptocurrency markets work and their unpredictability, to encourage investors to transfer money to exchanges, which are often created in the client’s own name by the criminal or by the victim, under duress from the offender,” the bank said. Men over the age of 35 are most at risk, as they are more willing to take the risk of their investments, the statement said.
In the statement, NatWest also shared some steps to help avoid falling victim to cryptocurrency scams, including the recommendation to never share one’s private keys with others. The bank also advised cryptocurrency investors to read all information calmly to avoid rash investments and fake websites. NatWest also recommended investors beware of giveaways as one of the most widespread scams in crypto.
NatWest is known for Cut off all credit and debit card payments to Binance in 2021. At the time, the company referred to a high level of crypto investment scams as well.
The news comes amid Bitcoin’s rally above $26,000, as US Consumer Price Index (CPI) data indicated inflation rose 6% year-on-year and 0.4% month-on-month. The BTC price growth is also likely to be attributed to the ongoing uncertainty surrounding the bankruptcies of major US banks, including Silicon Valley Bank, Silvergate, and Signature Bank.
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