United Kingdom bank Starling bans crypto-related purchases and deposits citing high danger

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Uk Bank Starling Bans Crypto-Related Purchases And Deposits Citing High Risk

Starling — a digital bank based in the United Kingdom — is the latest financial institution to crypto-related and activities for its cardholders.

Starling customers will no longer be able to buy digital currencies like Bitcoin (BTC) (BTC) or receive incoming transfers from cryptocurrency exchanges or merchants.

The online bank announced the latest information in a statement to customers likewise as on Twitter, citing the perceived high dangers of cryptocurrency trading.

The bank likewise stated digital currencies as “high danger and heavily used for criminal purposes.”

A spokesperson for Starling reported Cointelegraph that the bank has had restrictions of “varying degrees” on related to digital currency 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 digital currencies have great potential advantages, on the other hand, now, they are high danger and heavily used for criminal objectives and, as such, we no longer support them.”

The bank’s measures come the ongoing scandal involving FTX, one of the world’s largest cryptocurrency exchanges that allegedly misappropriated user funds with its sister firm Alameda. As reported by FTX’s bankruptcy filing, the firm owes greater than $3 billion to its 50 largest creditors, while the total of creditors reportedly numbers over 1 Million investors.

Several members of the cryptocurrency community believe that some restrictions on cryptocurrency activity by seem reasonable but a blanket ban is not the solution.

“While it is understandable to block transactions that banks believe are outright fraud, banning legitimate transactions involving an entire industry is unacceptable,” SovrynBTC argued in a tweet on Thursday. The cryptocurrency enthusiast likewise asked why banks do not care about several other types of risky transactions by their customers, including trading stocks or gambling.

The most recent restrictions are not the 1st time Starling has cracked down on crypto-related activity. The bank briefly halted payments to cryptocurrency exchanges in May 2021 over similar concerns, citing “high levels of suspected financial felony with payments to some digital currency exchanges.” Starling subsequently resumed cryptocurrency exchange operations about a month later.

The block comes several  weeks after Santander United Kingdom limited customer deposits to cryptocurrency exchanges to 1,000 British pounds ($1,196) per transaction, and a total limit of 3,000 pounds ($3,588) per month.

A number of other British banks reportedly banned crypto-related transactions completely TSB bank banned its 5.4 Million customers from Bitcoin (BTC) in June a year ago. Other major lenders including Lloyds, NatWest and Virgin reportedly banned digital currency purchases using cards in 2018.



Continue reading on Cointelegraph.com


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