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NatWest bans business cryptocurrency transactions

By Dan Moore

12:24, 22 April 2021

NatWest bans business cryptocurrency transactions

Risk assessors at NatWest will no longer serve business clients who wish to pay using cryptocurrencies such as Bitcoin and NEO.

The UK bank defended its stance at a shareholder event on Wednesday 22 April, saying it considered cryptocurrencies ‘high risk’.

Ban on business cryptocurrency dealings

In a statement made at the event, head of risk management Morten Friis said: “We have no appetite for dealing with customers, whether taking them on as new clients or having an ongoing relationship with people whose main business is backed by an exchange for cryptocurrencies, or otherwise transacting in cryptocurrencies as their main activity.”

Friis went on to say that the bank’s decision was prompted by a need to tread carefully when considering cryptocurrencies. His concerns lie with the evolving regulatory landscape, which some – and NatWest is not alone – consider to be far from the finished article.

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Cryptocurrency backlash

NatWest is not the first bank to rail against cryptocurrencies. Recent issues have also emerged at HSBC, which declared it was barring customers from buying MicroStrategy stock. The bank also banned customers from depositing profits from cryptocurrencies in their accounts.

Not all banks are so squeamish about handling cyber transactions, however. Barclays and TSB have facilities for customers seeking to withdraw or deposit cash in this way.

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NatWest ‘abandoning customers’

Commenting on NatWest’s decision, Danny Scott, CEO of CoinCorner, a UK-focused Bitcoin exchange, said: “The news that NatWest will refuse to serve business customers who accept Bitcoin is nothing but another attempt by a bank to try and stifle the inevitable success of Bitcoin.

“With increased attention on Bitcoin over the last year following the economic turmoil as a result of coronavirus, banks are most likely feeling threatened as both consumers and businesses are starting to embrace the cryptocurrency.

“Businesses of all sizes are now accepting Bitcoin, but most are small, independent retailers who are trying to find ways to attract new customers and salvage what is left of their livelihood as we come out of the other side of a global pandemic.

“NatWest should be doing everything to support these businesses, not abandoning them during this vulnerable time.”

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Read more: WeWork to accept payment in Bitcoin, Ethereum and USD Coin

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