Starling, a UK-based bank, is the latest to join the financial institutions that have banned all crypto-related activities on their platforms. The bank published the news in a statement to its clients and on its official Twitter account.
“Starling users can no longer buy crypto such as BTC or even receive transfers from cryptocurrency merchants or exchanges,” the report stated.
Meanwhile, the banking institute cited the high risks linked with crypto trading as the reason for the total ban. According to the bank, digital currencies are risky and used for criminal reasons.
A Starling Bank spokesperson stated that the bank has been operating with some restrictions on crypto transactions for a while. However, the latest ban only tightens limits on outbound and inbound transactions using bank transfers and cards.
”Cryptos’ innovative tech and concept offer significant potential benefits. Nevertheless, they are currently high-risk and extensively utilized for criminal reasons. Hence, we do not endorse them anymore,” the spokesperson added.
The bank’s actions come amid a continuing industry controversy regarding FTX. FTX was once among the largest crypto exchanges in the world before its latest demise.
The company reportedly misused customer cash alongside its sister company Alameda. Per FTX’s bankruptcy petition, the company owes over $3 billion to 50 of its largest creditors, totaling more than 1 million debtors.
UK Banks Ban Crypto-related Transactions
Meanwhile, some users of the crypto industry argue that some bank limits on crypto activity are sensible. However, they believe a total ban is not ideal.
Besides, this is not the first instance Starling has imposed limits on crypto-related operations. Last year May, the bank temporarily banned remittances to crypto exchanges.
It cited similar concerns, stating “high rates of potential financial crimes with payments to certain exchanges.” After a month, Starling began cryptocurrency trading operations.
However, the latest ban is coming a few weeks after another UK Bank introduced deposit limits. A few weeks ago, Santander UK limited users’ deposits to crypto platforms to £1,000 ($1,196) per transaction.
Furthermore, the limit per month is £3,000 ($3,588). Unfortunately for the crypto sector, most UK banks placed a total ban on cryptocurrency-related transactions.
For instance, TSB bank announced to its over 5.4 million clients last June that it has banned crypto purchases. Other financial entities like NatWest, Virgin, and Lloyds banned crypto buying through credit cards four years ago.
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