In the recent revelations, NatWest has made it clear that it is going to refuse to serve business customers who accept payments in cryptocurrencies like Bitcoin. The UK lender has recently categorized cryptocurrencies as high risk and additionally revealed that they will be taking a cautious approach to cryptocurrencies.
NatWest Will Not Serve Businesses That Accept Cryptocurrencies
One of the NatWest board members and the head of its risk committee, Morten Friss, said that the bank was taking an attentive approach to cryptocurrencies. In addition to this, they are going to closely monitor any alteration in tone from the UK regulator, which has already issued a warning that the customers stand to lose all their cash by putting their money in the crypto assets.
Morten Friss released a statement during an event on Wednesday that read:
“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.”
In addition to this, he said:
“We think of cryptocurrencies as high risk and we’re taking, for that reason, a cautious approach to this. It’s an area where regulation is very much in evolution and we’ll obviously respond to that as things change.”
The position of NatWest could mean turning away big clients who have recently made announcements regarding their plans to accept cryptocurrencies as payments. They will be doing so along with debit, cash, and credit cards.
Jamie Dimon, the Chief Executive of the United States Bank once called BTC a fraud and added to his statement that it is only good for those who are drug dealers, murderers, and people that reside in places like North Korea.
The Warning of The Financial Conduct Authority
The Financial Conduct Authority issued a warning to the investors who are going to put their money in these assets that the consumers should be well-prepared for handling losses. They said that the consumers may lose all their money if they anyhow invest in schemes that promise high returns from currencies like Bitcoin.
Friss revealed that they would have to conduct additional financial crime checks for any provisional customer who wanted to dabble in cryptos.
“We expect to continue to take a cautious approach, but we’ll watch how the market evolves.”