British neobank Starling Bank temporarily bans deposits to Bitcoin exchanges

British neobank Starling Bank has temporarily barred customers from depositing funds to cryptocurrency exchanges amid concerns about criminal activity, according to Decrypt.

“This is a temporary measure taken to protect customers in light of the high level of alleged financial crime in payments to certain cryptocurrency exchanges. This is a problem for all banks,” the company spokesperson told the publication.

Starling Bank said the restrictions would be lifted once additional checks for such transactions are implemented. Customers will be able to withdraw funds from Bitcoin exchanges to bank accounts.

Earlier, The Telegraph reported that banks in Britain, including Barclays and Monzo, were blocking payments to cryptocurrency trading platforms. In an interview with Decrypt, a Barclays spokesperson denied the report.

Reddit users also complained about Starling Bank’s restrictions. Some noted similar problems at Lloyds Bank. However, Monzo and Revolut continue to send payments to exchanges, several users said.

NatWest last week warned its customers about cryptocurrency scams, saying that from January to March 2021 it had received a record number of reports of crimes in the sector.

The regulator advised users to deal only with companies registered with the UK’s Financial Conduct Authority (FCA).

Currently, five companies are listed on the regulator’s register, two of which are affiliated with the Gemini cryptocurrency exchange. Applications from more than 160 organisations are still under consideration.

Earlier, the FCA introduced a temporary registration regime for cryptocurrency companies awaiting regulator approval. It will run until 9 July 2021.

Earlier, the National Crime Agency described Bitcoin a convenient tool for criminals.