UK bank Nationwide to assess crypto policy following FCA crackdown on Binance

British bank Nationwide is evaluating its cryptocurrency-related policies, following several other institutions in the UK assessing their approach to the new asset class. 

UK crypto sector takes a hit

The financial watchdog in the United Kingdom has been cracking down on cryptocurrencies after sending Binance a notice saying that the exchange is not allowed to conduct any regulated activities in the country. 

Nationwide Building Society is now reviewing its policies on cryptocurrency transactions. The bank stated that it was monitoring digital asset activities and placing extra precautions on activities that could potentially expose its clients to fraud. 

The British bank has been blocking suspicious payments and sending out “tailored scam warnings” as extra protection for its customers. 

The bank made the decision to “monitor the situation regarding cryptocurrencies” and is committed to set additional checks in areas where fraudsters could easily target customers. 

Nationwide joins several other UK banks that have started reviewing their policies on the new asset class recently, including NatWest and Santander. The former has refused to serve business customers who accept Bitcoin and other cryptocurrencies and has labeled them as “high risk.”

Citing that the new asset class is high risk and that regulation around digital assets currently lacks clarity, NatWest board member Morten Friis explained that the bank could “respond to that as things change.”

Earlier this week, Barclays decided to suspend credit and debit card deposits to Binance, stating that the reason for doing so was to “keep customers’ money safe.”

Binance responded to Barclay’s move by saying that it was “disappointing” and that the FCA notice was addressed to Binance Markets Limited. This separate legal entity does not affect the main exchange’s products and services.