NatWest is the UK’s newest banking giant to block payments to Binance
British banking giant NatWest Group has prevented all of its customers from deferring payments to Binance, the world’s largest cryptocurrency exchange by reported trading volume.
The bank has informed its clients that the decision was made in response to regulatory uncertainties surrounding the UK company:
With the rise in cryptocurrency-related scams and regulatory uncertainties surrounding Binance in the UK, we want to make sure your money is safe. For this reason we will refuse all credit and debit card payments to you until further notice.
NatWest Group has now joined Santander UK and Barclays, two other major UK banking institutions, to stop payments to Binance.
In late June, Binance Markets Limited, a London-based company on the exchange, received a warning from the Financial Conduct Authority (FCA) that it cannot engage in regulated activities in the UK
“A cautious approach”
Before the blanket banning of sending transactions to Binance, the bank last month limited the amount of funds that could be sent to cryptocurrency exchanges on a daily basis.
NatWest recently said it isn’t blocking cryptocurrency payments entirely. The restrictions only apply to crypto exchanges with the “highest risk of financial damage”.
His hostility towards crypto isn’t limited to Binance, however. In April, Morten Friis, Head of NatWest’s Risk Committee, announced that the Big Four bank had taken a “cautious approach” to cryptocurrencies:
We consider cryptocurrencies to be a high risk and therefore handle them carefully. It is an area where regulation is very evolving and we will of course respond to it as things change.
NatWest has also started rejecting companies that accept cryptocurrency payments.