Santander, a major multinational banking group has made a major announcement that involves the cryptocurrency community based in the United Kingdom.
Santander has announced that they have put a limit on the transactions that their customers process for cryptocurrencies. The limit has been imposed on customers who are based in the United Kingdom.
The firm has also confirmed that they are not aiming to target particular users or transactions. They have confirmed that the limit has been imposed on all the transactions any kind of users process for crypto.
Reason behind Limitations
The banking group has announced that it had to make the decision as the regulators have continued issuing fraud warnings involving cryptocurrencies.
It is a matter of great concern as the cryptocurrency industry is becoming a target among hackers and cybercriminals, as it is decentralized.
This particular feature makes the hackers untraceable, which goes in their favor and they can continue with their attacks without fearing any lawful actions.
Due to the constant rise in fraudulent activities involving cryptocurrencies, the regulators in the United Kingdom are worried about the well-being of their investors.
No Coverage for Crypto Holders
This is the reason why the regulators are issuing warnings to the cryptocurrency community. The regulator has made it clear that the funds that the investors have stored in the form of crypto are unprotected.
The regulatory authorities have communicated that the investors’ funds stored in the form of cryptocurrencies are not protected by any kind of compensation.
As per the authorities, such users may have no coverage from the Financial Services Compensation Scheme and the Financial Ombudsman Service.
If anything goes wrong with such holdings and the investors end up losing them, there would be no coverage for them.
Santander wants to do the same
As communicated by Santander UK, they want to ensure that they are able to protect the interests and holdings of their customers.
They want to ensure that their customers are protected from any kinds of risks related to cryptocurrencies. Therefore, it is very important that they take necessary measures to deal with the high risks.
This is the reason why they have proceeded with imposing limitations on the amount of money that the users can process in a particular period.
The limitations set by Santander UK are for the funds that the users can send over to the cryptocurrency exchanges.
Enforcement from November 11
The banking group has announced that the new limits would be enforced from November 15. Once implemented, the users will not be able to send over £1,000 to a crypto exchange in a single transaction.
Apart from the single transaction limit, the bank would also implement a £3,000 limit on a monthly basis.