Starling Bank Says No to Crypto
In a move that has sent waves through the digital currency community, Starling Bank has officially banned all crypto-related transactions for its cardholders. That’s right, folks—no more Bitcoin purchases or receiving funds from crypto exchanges to your Starling account. In early November, the bank decided it was time to slam the brakes on these transactions, citing the image of cryptocurrencies as risky business.
Citing High Risk
Starling’s spokesperson elaborated, stating that the bank consistently reviews its stance on financial crime, concluding that crypto activities are simply too risky. The tweet from the bank echoed this sentiment:
“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.”
Cryptos: An Entertaining But Risky Business
While Starling does acknowledge the exciting potential of crypto technology, let’s just say they’re keeping their distance like an awkward dance partner at a middle school prom. Their main concern? The growing perception of cryptocurrencies as tools for illicit activities. Sure, it’s a bit of an overreach—but safety first, right?
Previous Restrictions and Ongoing Regulations
Interestingly enough, Starling isn’t new to this. The bank had previously slapped on some limitations regarding crypto exchanges back in May 2021, only to begrudgingly ease things up about a month later. It seems this latest crackdown comes amid the ongoing drama from the collapse of FTX, a once-reputable giant in the crypto world that took a spectacular tumble. Remember, FTX reportedly owes over $3 billion to its creditors. Yikes!
Community Reactions: Split Opinions
The crypto-enthusiasts aren’t taking the ban lying down. Many feel that outright bans are too far-reaching. For instance, one user, SovrynBTC, rightly pointed out:
“While it is understandable to block individual transactions that banks believe are outright fraud, banning legitimate transactions involving an entire industry is unacceptable.”
He also quipped about the irony of banks freely allowing purchases of tobacco and alcohol but blocking crypto transactions. You have to admit, there’s a fair point in that!
The Wider Impact on UK Banking and Crypto
This ban isn’t an isolated incident; several other UK banks have restricted or outright banned crypto-related transactions. For instance, Santander UK limited customers to a mere £1,000 ($1,196) for deposits to crypto exchanges. Meanwhile, TSB bank restricted its 5.4 million customers from buying Bitcoin. It seems the British banking scene is collectively tightening the leash on crypto activities.
