British Starling Bank to curb customers’ crypto activity

UK-based Starling Bank has banned purchases of cryptocurrencies via payment cards and imposed additional restrictions on transfers related to digital assets.

Hi there 👋 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.

— Starling Bank (@StarlingBank) November 22, 2022

«The innovative technology and the thinking behind cryptocurrencies have great potential. However, right now they pose a high risk and are widely used for criminal purposes. Therefore, we no longer support them», — said a Cointelegraph representative.

The bank’s decision drew criticism from the community. Many noted that some restrictions on crypto activity by banks seem reasonable, but not a complete ban.

A user with the handle SovrynBTC asked why financial institutions do not care about many other kinds of high-risk transactions by their clients.

4:

Banks do not meddle in any other “high risk” activities — they’ll happily let you purchase tobacco, alcohol, or prescription drugs. Or let you trade stocks or gamble.

Where’s the logic?

— Sovryn | DeFi for Bitcoin (@SovrynBTC) November 24, 2022

«Banks … will happily allow you to purchase tobacco, alcohol or prescription drugs. Or … trade stocks, gamble. Where’s the logic?» — he wrote.

As a reminder, in May 2021 Starling Bank temporarily prohibited clients from depositing to cryptocurrency exchanges. The restrictions were lifted a month after testing the new anti-financial-crime system.

In June 2022, Starling Bank chief Anne Bodencalled cryptocurrencies a threat to payment systems.

Earlier the British arm of Santander said it planned to block transfers to crypto exchanges in 2023. From November 15, limits were introduced on such operations.

Prior to that, Lloyds and NatWest imposed various restrictions.

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