The growing popularity of cryptocurrencies, as well as regulatory scrutiny of exchanges like Binance, puts pressure on UK lenders. Nationwide is reconsidering its stance on clients who dabble in cryptocurrencies. This makes it the latest in a long line of British banks to scrutinise the industry.
According to a Nationwide representative, the action is part of the bank’s intention to “monitor the situation regarding cryptocurrencies”. It intends to conduct further inspections in locations where customers may be in danger from scammers.
In a previously unreported comment on July 6, the spokesperson said, “Our policy is currently under review.”
The bank is also taking other precautions in the area, such as rejecting suspicious payments and giving “tailored scam warnings”.
Other UK retail banks, like Santander and NatWest, have reviewed their cryptocurrency policy in recent months.
Some have placed restrictions on particular cryptocurrency exchanges, with Barclays being the most recent to halt customer transfers to Binance.
NatWest has also imposed a daily limit on the amount of money a customer can transfer to a cryptocurrency exchange. It is blocking payments to a “small number of cryptocurrency asset firms” that appeared to be particularly vulnerable. A spokesperson abstained from naming the blocked companies.
Binance, a cryptocurrency exchange, has been at the centre of a bank crackcdown this month. Numerous foreign regulators have taken a harsher stance on the company’s activities.
Binance received warning from the FCA at the end of June, noting that it lacked licence to conduct regulated activities. Japan, the Cayman Islands, and Thailand have all issued similar cautions about the exchange.
On Binance, British citizens can still purchase, sell, and keep cryptocurrencies, but the process is unregulated and without traditional investor safeguards.
Prior to this year’s price rise in digital assets, over 2.3 million UK citizens held cryptocurrencies in January.