Breaking: Santander UK Bank Reportedly Halts Coinbase Payments

UK-Based Bank Santander has reportedly halted payments to popular US cryptocurrency exchange Coinbase. Apparently, the decision has been made in regard to the increase of fraud related to the exchange. 

UK Bank Santander Halts Coinbase Payments

According to a Reddit user, the UK-based Bank Santander has halted payments to Coinbase – one of the most popular cryptocurrency exchanges based in San Francisco, USA. 

The user explains:

Just got off the phone with a Santander rep in the U.K. who informed me they will no longer be allowing their customers to deposit money to Coinbase.

After I put in a complaint their “complaints department” confirmed to me that I should move to an alternative bank if I wish to make the payment.

They went on to say this is likely because of an increase in fraud related to Coinbase.

While there are no further details on the matter, it’s perhaps presumable that users won’t be able to withdraw their money to the bank as well. However, we have yet to see what the bank’s official statement on the matter will be. 

In any case, a few short days ago, Coinbase announced that certain employees of the company have received an email from a perpetrator who had sent out links that, when opened, “would install malware capable of taking over someone’s machine.“ According to the exchange, this was a sophisticated, as well as highly-targeted and thought out attack which used complex hacking methods to access Coinbase’s systems and to presumably make off with some of the billions of dollars worth of digital assets it holds. 

An Unexpected Move

If it was any other bank that halted payments to cryptocurrency exchanges, perhaps it wouldn’t have been so surprising, given their overall attitude towards the field. 

UK’s Bank Santander, however, was known for being rather friendly to blockchain-based technology. 

The institution became the first UK bank to start using Ripple for real-time cross-border payments. 

Speaking on the matter back then, Ed Metzger, Head of Innovation Technology and operations at Santander UK said: 

It’s the first time a U.K. bank has sent payments of this type via Ripple and launched it as a commercial service.