UK bank Starling restricts crypto-related purchases

Date:

- Advertisement -

Starling has banned customers from purchasing digital currencies with their bank cards or receiving funds during transfers from crypto merchants.

Starling, a digital bank based in the United Kingdom, is the latest financial institution that bans crypto-related transfers and activities for its cardholders.

Customers of Starling are no longer able to purchase digital currencies such as Bitcoin or receive incoming transfers from cryptocurrency exchanges or merchants.

The online bank announced the news to customers and on Twitter, citing the perceived high risks of trading.

Furthermore, the bank described cryptocurrencies as “high risk and heavily used for criminal purposes.”

A spokesperson for Starling says that the bank has had restrictions of “varying degrees” on transactions regarding cryptocurrency for some time. “We recently tightened restrictions on inbound and outbound transactions by card and bank transfer,” the representative stated, adding:

​​”The innovative technology, and thinking, behind cryptocurrencies have great potential advantages. However, right now, they are high risk and heavily used for criminal purposes, and, as such, we no longer support them.”

UK bank Starling restricts crypto-related purchases

The bank took some measures that came amid the ongoing industry scandal involving FTX, one of the world’s biggest crypto exchanges that allegedly misappropriated user funds with Alameda. According to FTX’s bankruptcy filing, this company owes over $3 billion to its 50 biggest creditors, while the total amount of creditors reportedly numbers more than 1 million investors.

Some traders in the crypto community believe that some restrictions on crypto activity by most banks seem reasonable; however, there are better solutions than a blanket ban.

“While it is understandable to block individual transactions that banks believe are outright fraud, banning legitimate transactions involving an entire industry is unacceptable,” SovrynBTC argued in a tweet on Thursday.

The crypto enthusiast also asks why the banks don’t care about various other types of risky transactions by their customers, including gambling or trading stocks.

The recent restrictions and bans aren’t the first time Starling has cracked down on cryptocurrency-related activity. The bank shorted stopped payments to crypto exchanges in May 2021 over similar concerns, citing “high levels of suspected financial crime with payments to some cryptocurrency exchanges.” Subsequently, Starling resumed crypto exchange operations about a month later on.

The block comes a few weeks after Santander UK limited customer deposits for cryptocurrency exchanges to 1,000 pounds per transaction and a total of 3,000 pounds monthly.

Various British banks reportedly restricted and banned many crypto transactions altogether. In June last year, TSB bank banned its 5.4 million customers from buying Bitcoin. Other primary lenders may include NatWest, Lloyds, and Virgin reportedly restricted crypto purchases by using credit cards in 2018.

- Advertisement -
Mufasa
Mufasa
Mufasa is the lead writer at CryptoMufasa who likes to share all the latest info on the crypto world with you! Mufasa Enjoys enjoys a good read and recommendations so don't forget to comment on the posts and let him know.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More like this
Related

Is It Idea To Invest In Meme Coins Now That Dogecoin Has Continued To Increase?

One of the best meme coins, Dogecoin (DOGE), has...

Binance vs. Huobi: Which Is The Best Cryptocurrency Trading Platform In 2023?

A cryptocurrency exchange platform is necessary for trading cryptocurrency....

Coinbase Is Fined $3.6 Million By A Dutch Regulator For Not Being Registered

Coinbase exchange broke the law by offering cryptocurrency services...

Crypto ATM Installations: Australia Ranked 3rd After USA and Canada

Australia currently has 234 cryptocurrency ATMs, placing it third...