Cryptocurrencies

NatWest cuts payment channels to Binance, citing regulatory uncertainty

NatWest, a major UK-based retail and commercial bank, has blocked all credit and debit card payments to crypto exchange Binance until further notice, the bank confirmed to Cointelegraph on Thursday.

“All credit and debit card transactions to Binance have been blocked. We have been limiting payments to Binance for several weeks,” said a NatWest spokesperson, adding that the resumption of Binance support will be continually reviewed.

The representative said that the bank has seen a high level of cryptocurrency investment scams targeting its clients in retail and commercial banking, particularly through social media sites. “We are temporarily reducing the maximum daily amount a customer can send to cryptocurrency exchanges, as well as blocking payments to a small number of cryptocurrency asset companies where we have seen particularly significant levels of fraud. Our clients will still be able to accept cryptocurrencies as forms of payment, “the spokesperson said.

The move has sparked outrage on a large scale in the crypto community, with many disgruntled NatWest customers expressing dissatisfaction with the bank willing to decide how to spend their money.

Some crypto enthusiasts expressed disappointment with Natwest’s move, with a Twitter user stating that “it is as if people can no longer spend their money on what they want.” One NatWest user even reported She complained, ”I will eliminate my habit in the long run and encourage others to do the same. I have not authorized them to make financial decisions on my behalf. ”

Binance did not immediately respond to Cointelegraph’s request for comment.

Related: Binance Halts Stock Token Sales, ‘Effective Immediately’

NatWest has previously restricted encryption services to its users. The company introduced a daily limit for cryptocurrency purchases by its customers in late June, targeting a number of cryptocurrency exchanges, including Binance.

The bank has followed the lead of Barclays, the British multinational universal bank that began blocking payments to Binance in late June until further notice. A Binance spokesperson later emphasized that the recent Financial Conduct Authority warning about the company only applies to Binance Markets Limited, a separate legal entity from the major global exchange that operates through Binance.com.