The British bank Starling has banned its customers from transferring money from their account to cryptocurrency platforms and vice versa due to the high volatility of crypto assets.
Starling management announced that the decision to stop supporting crypto transactions for customers was made due to concerns about the safety of user funds. The bank believes that cryptocurrencies are an industry with too high a level of risk, which is not properly regulated. Against the backdrop of recent events such as the liquidity crisis of the FTX exchange, which led the entire market to negative consequences, the bank has tightened its position in relation to crypto assets.
“The innovation and technology behind cryptocurrencies has great potential benefits. However, crypto assets are now high risk and actively used for criminal purposes, so we no longer support digital assets,” said a Starling spokesperson.
Last spring, the bank already temporarily banned sending deposits to cryptocurrency trading platforms in order to reduce the risks of financial crimes. However, a month later, the restrictions were lifted. In November 2022, Santander also restricted crypto transactions for UK customers, setting a limit of £1,000 per transaction for them.
Starling management has always been skeptical about crypto assets. A few months ago, Starling CEO Anne Boden stated that cryptocurrencies are often used by fraudsters, and therefore pose a threat to traditional payment systems.