- The UK’s NatWest retail and commercial bank is taking steps to protect customers from possible losses due to Bitcoin’s soaring market value.
- Also, crypto scammers are exploiting the current economic downturn to entice investors with promises of high returns.
As Bitcoin’s market value surges to $25,057, NatWest, a retail and commercial bank in the United Kingdom, is taking steps to protect customers. The bank announced new payment restrictions for cryptocurrency exchanges on March 14. Daily spending caps of 1,000 British pounds (GBP) ($1,216) and 30-day spending caps of 5,000 GBP ($6,080). These limitations are designed to protect customers from potential financial losses.
NatWest has announced a new restriction to help protect its customers from large losses in the volatile and risky cryptocurrency market. “We have seen a sharp increase in the number of scams using cryptocurrency exchanges,” says Stuart Skinner, Head of Fraud Protection at NatWest, “so we are taking action to protect our customers.” He also emphasized the importance of self-custody in crypto investments, warning investors against delegating asset storage to a third party. “Your cryptocurrency wallet should always be under your sole control, and no one else should have access to it. If you did not create the wallet or cannot access the funds, there is a good chance it is a scam “He stated.
According to NatWest, crypto scammers are taking advantage of the current cost-of-living crisis to entice investors with promises of high returns. According to the bank, these criminals frequently use a lack of understanding of how cryptocurrency markets work, as well as their volatility, to entice people to transfer money into exchanges set up in their name. Men over the age of 35 are especially vulnerable to these schemes.
NatWest recommended the following precautions to help protect against cryptocurrency scams: Never share one’s private keys with anyone, carefully read all information before making any investments, and be wary of giveaways, as this is one of the most common cryptocurrency scams.
Furthermore, NatWest advised investors to take their time in order to avoid rushed investments and falling victim to fraudulent websites.
NatWest announced in 2021 that it would discontinue all credit and debit card payments to cryptocurrency exchange Binance, citing a high level of cryptocurrency investment scams as the primary reason for the decision.
This information coincided with Bitcoin’s price surging above $26,000 as a result of rising inflation data from the US Consumer Price Index (CPI).
Furthermore, the ongoing uncertainty surrounding major bank failures in the United States, such as Silicon Valley Bank, Silvergate, and Signature Bank, may have contributed to BTC’s rise.