Starling Bank Bans Crypto Trading
The UK's Starling Bank has tightened its grip on crypto trading, announcing a ban on all crypto transactions for users, describing the activity as "high risk and heavily used for criminal purposes"'.
Following the collapse of the FTX exchange earlier this month, banks have stressed the need for crypto regulation.
Starling Bank customers woke up to bad news
Starling Bank crypto customers received a text message stating, "we view the crypto activity as high risk". The bank said it had decided to halt all card payments to cryptocurrency merchants and "impose additional limitations on outgoing and incoming transfers".
It comes just two weeks after Santander imposed new limits on Bitcoin and Ethereum transactions and warned of the potential consequences of investing in crypto assets.
As of 15 November, Santander's mobile and online banking customers were limited to a £1,000 limit per cryptocurrency transaction and a £3,000 cap on transactions made over a rolling 30-day period. While payments will still be allowed from the cryptocurrency exchange, including Binance, payments sent to Binance will remain blocked.
Starling is not backing off
A representative of Starling Bank said the institution has had restrictions on cryptocurrency transactions of varying degrees for a long time.
The purpose of this communication, he continued, was to ensure that this was understood by clients who had previously completed such transactions.
He added that while the cutting-edge technology that underlies cryptocurrencies has significant advantages, the high risk and widespread criminal use meant the organisation could no longer support them.
More banks restrict crypto transactions
The Starling Bank crypto stance is the latest bank move to restrict customer crypto activity. Lloyds, Barclays, and RBS have implemented various new measures, such as blocking transactions with cryptocurrency exchanges.
According to finder.com, 47% of UK banks forbid customers from communicating with cryptocurrency exchanges.
Author: Priya Kumari
Priya is a passionate content writer and the co-founder of Finendorse. She is an enthusiastic crypto investor and has a huge interest in the upcoming digitisation age.