As Bitcoin reaches multi-month highs, NatWest, a retail and commercial bank in the United Kingdom, is taking steps to shield clients from future crypto losses.
On March 14, NatWest imposed daily and monthly limits on payments to bitcoin exchanges and imposed significant limitations.
According to a notice, NatWest has established a daily restriction of 1,000 British pounds ($1,216) for crypto exchange transactions. The bank has also set a 5,000-pound ($6,080) 30-day payment cap.
NatWest’s most recent limits seek to safeguard consumers from losing “life-changing amounts of money,” the bank stated, adding that crypto investments are dangerous owing to the industry’s prevalence of frauds.
Stuart Skinner, head of fraud prevention at NatWest, said, “We’ve witnessed a rise in the number of frauds using cryptocurrency exchanges, and we’re taking steps to safeguard our consumers.”
The CEO stressed the significance of self-custody in cryptocurrency and urged crypto investors against outsourcing the safekeeping of their assets to a third party, stating:
“You should always have sole control of your cryptocurrency wallet and nobody else should have access. If you didn’t set the wallet up yourself or can’t access the money then this is likely to be a scam.”
According to the organization, crypto fraudsters are increasingly taking advantage of the existing cost-of-living issue by promising large profits.
“Criminals take advantage of investors’ lack of understanding of how cryptocurrency markets operate and their unpredictability to convince them to transfer funds to exchanges,” the bank said.
“These exchanges are frequently set up in the customer’s name by the criminal or by the victim under duress from the criminal.”
The revelation indicates that males over 35 are especially in danger since they are more inclined to take risks with their money.
In the statement, NatWest also provided advice on how to avoid falling prey to cryptocurrency scams, including the advice to never reveal one’s private keys.
Also, the bank recommended crypto investors study all material slowly to prevent hurried investments and fraudulent websites.
NatWest also cautioned investors to avoid giveaways, which are one of the most prevalent frauds in cryptocurrency.
NatWest is notorious for terminating all credit and debit card payments to Binance in 2021. At the time, the company also referred to a high level of crypto investment scams.
The news comes amid Bitcoin surging above $26,000 as the United States Consumer Price Index (CPI) data indicated that inflation climbed 6% year-on-year and 0.4% month-on-month.
BTC price growth is also likely to be attributed to the ongoing uncertainty surrounding the failures of major banks in the United States, including Silicon Valley Bank, Silvergate, and Signature Bank.
