As part of the cryptocurrency clampdown, British financial institution Starling Bank has intensified its effort and has further placed a ban on crypto-related purchases and deposits.
Therefore, customers of the bank will not be allowed to use their bank cards to either purchase digital assets like Bitcoin (BTC) or receive transfers from the crypto business as Starling Bank described such transactions as “high risk and heavily used for criminal purposes.”
A Starking Bank tweet stated “We always review our position in relation to financial crime. We consider crypto activity to be high-risk. We’ve taken the decision to prevent all card payments to crypto merchants and to implement further restrictions on outgoing and incoming transfers.”
This one was revealed after a customer attempted to perform a crypto transaction but it was declined. According to a company’s spokesperson, Starling Bank had varying degrees of constraints or restrictions on cryptocurrency transactions.
“We recently tightened restrictions on inbound and outbound transactions by card and bank transfer,” the spokesperson clarified, adding that “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.”
Crypto Clampdown Heightens Amid FTX Crash
Starling Bank has now joined the likes of Lloyds, Barclays, and RBS which also imposed restrictions on digital asset transactions.
Although not specified, it is believed that the latest ban from Starling Bank is somewhat influenced by the recent implosion of the FTX Derivatives Exchange. FTX was a one-time leading crypto exchange founded by Sam Bankman-Fried who was also the Chief Executive Officer (CEO) before he resigned in the wake of the liquidity crunch.
Since its crash, financial watchdogs and regulators all over the world have become more vigilant about crypto exchanges and their activities.
Renowned global financial firm Santander equally placed a cap on all crypto transactions for its United Kingdom clients. The cap was placed at £1,000 approximately $1,196 on every cryptocurrency transaction and a total limit of 3,000 pounds ($3,588) per month.
On the other hand, some members of the crypto community claim that these restrictions by banks on crypto transactions are extreme. These community members have named the act ‘unreasonable’.