Following a notification from the British financial watchdog to Binance, the Nationwide Building Society is examining its crypto rules.
The British bank is taking extra precautions to protect clients against fraudsters.
The bank, which is based in Swindon, is barring suspicious payments and issuing targeted fraud alerts.
Nationwide, a British bank, is reviewing its cryptocurrency policies, following in the footsteps of several other UK financial institutions who are reconsidering their stance to the new asset class.
After sending Binance a notification stating that the exchange is now authorized to undertake any regulated activity in the country, the UK’s financial authority has started tightening down on cryptocurrencies.
The policies of the Nationwide Building Society on bitcoin transactions are now being reviewed. The bank indicated that it was closely monitoring digital asset activities and taking extra safeguards in areas where its clients might be vulnerable to fraud.
As an added layer of safety for its customers, the British bank has started denying suspicious transfers and sending out “targeted scam alerts.”
The bank has decided to “watch the situation regarding cryptocurrencies” and has committed to implementing additional safeguards in places where fraudsters are likely to target clients.
Nationwide follows a number of other UK banks, including NatWest and Santander, in examining their policies on the new asset class. The former has designated Bitcoin and other cryptocurrencies as “high risk” and has refused to serve commercial customers who accept them.
NatWest board member Morten Friis noted that the new asset class is high risk and that legislation around digital assets is currently unclear, but that the bank could “react to it as things change.”
Barclays announced earlier this week that it will suspend credit and debit card deposits into Binance, citing the need to “keep customers’ money safe.”
Binance called Barclay’s move “disappointing” and pointed out that the FCA notification was sent to Binance Markets Limited. The products and services of the main exchange are unaffected by this independent legal organization./n
