NatWest, a retail and commercial bank in the United Kingdom, is taking steps to safeguard customers from possible losses associated with Bitcoin’s soaring market value of up to $25,057. On March 14, the bank issued new payment restrictions for transactions involving cryptocurrency exchanges – daily spending caps of 1,000 British pounds (GBP) ($1,216) and a 30-day limit of 5,000 GBP ($6,080). These restrictions are intended to protect customers from potential financial losses.
NatWest has announced a new restriction to help protect its customers from losing large sums of money in the highly volatile and risky cryptocurrency market. According to Stuart Skinner, Head of Fraud Protection at NatWest: “We have seen a sharp rise in the number of scams using cryptocurrency exchanges, so we are taking action to protect our customers.” He further stressed the importance of self-custody in crypto investments, cautioning investors against delegating storage of their assets to a third party. “You should always be the sole controller of your cryptocurrency wallet, and no one else should have access. If you didn’t set up the wallet yourself or cannot access the money, there’s a good chance it is a scam,” he said.
NatWest has warned that crypto scammers have been exploiting the current cost-of-living crisis to entice investors with promises of high returns. According to the bank, these criminals often use a lack of understanding of how cryptocurrency markets work and their unpredictability to encourage people to transfer money into exchanges set up in their name. Men over 35 are particularly at risk of falling victim to these schemes.
To help protect against crypto scams, NatWest suggested a few precautionary steps: never share one’s private keys with anyone, read all information carefully before making any investments, and be wary of giveaways, as this is one of the most common scams in the crypto sphere. Additionally, NatWest advised investors to take their time to avoid rushed investments and falling prey to fake websites.
In 2021, NatWest announced that it would cut all credit and debit card payments to cryptocurrency exchange Binance, citing a high level of crypto investment scams as the primary reason for the decision. This news coincided with Bitcoin’s price surging above $26,000 due to rising inflation data from the United States Consumer Price Index (CPI). Additionally, the ongoing uncertainty around major banking failures in the US, such as Silicon Valley Bank, Silvergate, and Signature Bank, may have also contributed to BTC’s surge.
