UK Bank Starling Blocks Payments to Crypto Platforms — Claims Crypto Is High Risk, Heavily Used for Criminal Purposes

Must read

CryptoSlate Daily wMarket Update: Ethereum posts 9 week high to lead the top 10 cryptos

CryptoSlate Daily wMarket Update: Ethereum posts 9 week high to lead the top 10 cryptos Samuel Wan · 10 mins ago...

SBF believes FTX can recover if sold as a going concern

SBF believes FTX can recover if sold as a going concern Liam 'Akiba' Wright · 1 hour ago · 2...

Nexo offices raided on allegations of financial crimes

Nexo offices raided on allegations of financial crimes Samuel Wan · 2 hours ago · 1 min read ...

Hong Kong to only allow investing in highly liquid virtual assets

Hong Kong to only allow investing in highly liquid virtual assets Christian Nwobodo · 2 hours ago · 1 min...

UK Bank Starling Blocks Payments to Crypto Platforms — Claims Crypto Is High Risk, Heavily Used for Criminal Purposes

Starling Bank has informed its customers that the bank no longer supports fund transfers to cryptocurrency platforms, including crypto exchanges. The bank stated that cryptocurrencies “are high risk and heavily used for criminal purposes and, as such, we no longer support them.”

Starling Bank Blocks Fund Transfers to Crypto Exchanges

London-headquartered Starling Bank recently notified its customers that the bank no longer supports money transfers to cryptocurrency platforms, including crypto exchanges.

A number of people asked the bank for clarification on Twitter. Starling Bank provided the same response to all customers over the past couple of days, stating that crypto activity is considered high risk and it has decided to prevent all card payments to crypto merchants. The bank added that it is implementing further restrictions on outgoing and incoming transfers.

UK Bank Starling Blocks Payments to Crypto Platforms — Claims Crypto Is High Risk, Heavily Used for Criminal Purposes

Many people are unhappy with the bank’s decision. Some even said they’ve closed their accounts at the bank due to this change. One person tweeted to the bank:

Why are you deciding what a customer can or can’t do with their money?

A spokesperson for Starling Bank was quoted by several news outlets as saying: “Starling has had restrictions of varying degrees on crypto transactions for some time, like many other banks. We recently tightened restrictions on inbound and outbound transactions by card and bank transfer.” The spokesperson added:

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.

Starling is among the latest banks in the U.K. to impose restrictions on customer crypto activity. According to Finder.com, 47% of U.K. banks do not support transfers to crypto platforms. Other banks, including Lloyds, Barclays, and RBS have similarly imposed a range of prohibitive measures including blocking credit card payments and transactions with crypto exchanges.

Last week, Santander Bank began limiting customer transfers to crypto exchanges to 1,000 pounds ($1,209) per transaction and 3,000 pounds in any rolling 30-day period for transfers via mobile and online banking. The bank will also block U.K. customers from sending real-time payments made in-branch and via telephone, online, or mobile banking to crypto exchanges starting next year.

What do you think about U.K. banks blocking customer payments to crypto exchanges? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

More articles

Latest article

CryptoSlate Daily wMarket Update: Ethereum posts 9 week high to lead the top 10 cryptos

CryptoSlate Daily wMarket Update: Ethereum posts 9 week high to lead the top 10 cryptos Samuel Wan · 10 mins ago...

SBF believes FTX can recover if sold as a going concern

SBF believes FTX can recover if sold as a going concern Liam 'Akiba' Wright · 1 hour ago · 2...

Nexo offices raided on allegations of financial crimes

Nexo offices raided on allegations of financial crimes Samuel Wan · 2 hours ago · 1 min read ...

Hong Kong to only allow investing in highly liquid virtual assets

Hong Kong to only allow investing in highly liquid virtual assets Christian Nwobodo · 2 hours ago · 1 min...

Samsung Asset Management to list Bitcoin ETF on Hong Kong Stock Exchange

Samsung Asset Management to list Bitcoin ETF on Hong Kong Stock Exchange Christian Nwobodo · 3 hours ago · 1...