Santander to block UK transfers to crypto exchanges in 2023

As part of steps to safeguard clients against frauds, Santander will prohibit UK customers from transmitting real-time payments to cryptocurrency exchanges starting in 2019.

The bank will implement a restriction on all real-time payments made to cryptocurrency exchanges via telephone banking, in-branch payments, as well as internet and mobile banking, at some undisclosed point in 2023.

The bank will join other UK retail banks in restricting client transfers to cryptocurrency exchanges as of November 15 of this year. For transfers to cryptocurrency exchanges made via mobile and online banking, Santander users will be subject to limitations of 1,000 pounds ($1,123) per transaction and 3,000 pounds overall in any rolling 30-day period.

Customers' accounts will still be able to accept payments from cryptocurrency exchanges.

Regulators have issued warnings about the dangers of fraud and scams in the mostly unregulated realm of cryptocurrency trading.

According to a note on its website, Santander has seen a "significant surge" in UK clients falling prey to cryptocurrency theft in recent months.

A Santander representative said that protecting their clients from bitcoin frauds was one of their top priorities.

"We want to further safeguard clients by preventing any quicker payments from Santander accounts that we detect to cryptocurrency exchanges starting in 2023."

The technology known as Faster Payments enables real-time bank transfers for the majority of UK bank accounts. Faster Payments' parent company, Pay UK, said in an email that it was "working with authorities and the payments sector to design and implement greater protection for victims of fraud."

Santander said that it will keep preventing any payments to the cryptocurrency exchange Binance.

This policy was implemented in July 2021 in response to a warning from the British financial authority over the exchange.

A request for comment from Binance did not immediately get a response.

The daily amount of money that users may transmit to bitcoin exchanges was restricted by the British Natwest Group last year.