Starling bank bans crypto card payments and deposits stating that cryptocurrencies are high risk and heavily used for criminal purposes.
The most recent financial institution to ban crypto-related transfers and activity for its cards is Starling, a digital bank with headquarters in the United Kingdom. Customers of Starling won’t be able to buy cryptocurrencies like Bitcoin (BTC) any more, nor will they be able to accept incoming transactions from crypto exchanges or businesses.
The online bank made the announcement on Twitter in a statement to customers, citing the alleged significant dangers associated with trading cryptocurrencies.
A customer of Starling Bank received notice that the bank no longer accepts cryptocurrency transactions. The client subsequently tweeted a query to the bank, to which they received a response saying that the bank is reevaluating its stance against financial crimes and views cryptocurrency activities as “high risk.” The bank has imposed further limitations on ongoing and incoming transactions.
The bank also described cryptocurrencies as “high risk and heavily used for criminal purposes.” A spokesperson added that the bank has had restrictions of “varying degrees” on transactions related to cryptocurrency for some time.
Starling Bank Crypto Crackdown Continues
The bank’s actions coincide with the ongoing industry scandal involving FTX, one of the largest cryptocurrency exchanges in the world, which is accused of stealing customer cash alongside its sister company Alameda. The business owes its 50 largest creditors a combined sum of more than $3 billion, according to FTX’s bankruptcy petition, while the overall number of creditors is allegedly over 1 million investors. Some people in the crypto world think that putting limitations in place is not the answer.
The most recent limitations are not the first time Starling has strictly enforced regulations regarding crypto-related transactions. In May 2021, the bank temporarily stopped making payments to several cryptocurrency exchanges due to similar worries, claiming “high levels of suspected financial wrongdoing.”Starling subsequently resumed crypto exchange operations about a month later.