The bank informed its customers in a memo this week, opening with 'Cryptocurrency fraud is on the increase' and going on to say there had been a large rise in crypto scams.
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"Crypto assets are unregulated so if something goes wrong, money held in crypto wallets is not protected by the
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It means that, over a 30-day rolling period, payments to cryptocurrency exchanges will be restricted to £2,500 for a single transaction and a total of £10,000 within that period.
Although the figure remains high compared to many high street banks - several of which do not permit any direct payment to crypto exchanges at all - the move is being viewed as particularly galling to investors who had championed
One critic - fintech expert Stefania Barbaglio, founder of Cassiopeia Services, said she believes the tactic of suppressing crypto and alienating customers seems like a familiar story of history repeating itself.
"Banks don't like crypto, they see it as scam - all about criminals using cryptocurrency as an opportunity to steal money from customers," she told Crypto AM.
"This narrative falls short of acknowledging the revolutionary potential of cryptocurrency. Crypto has empowered many people to monetise their assets; it has opened greater opportunities for entrepreneurs, businesses to get funding and transact in a faster and easier way.
"Money isn't just a commodity; it's a fundamental right. The same principle applies to banking. Every individual should have access to their financial resources and the ability to transact freely."
"These risks are perceived as either AML or facilitating potential fraud - even where the bank might be held liable for client losses," he said.
(c) 2023 City A.M., source