Due to ‘suspected financial crime,’ UK bank Starling has banned cryptocurrency exchange deposits.

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Starling informed Decrypt that it has prohibited deposits to cryptocurrency exchanges as it investigates “high levels of suspected financial crime.”

Due to worries about illegal activities, a British digital bank has temporarily prohibited its customers from putting funds into cryptocurrency exchanges.

 

“This is a temporary measure that we’ve taken to protect customers, having observed high levels of suspected financial crime with payments to some cryptocurrency exchanges,” Starling told Decrypt. “This is not just an issue for Starling, but for all banks.”

Starling said that it will reverse the ban “as we roll out additional checks specifically for payments to crypto exchanges.” The spokesperson declined to comment when the bank proposes to lift the ban.

The bank, however, stated that only deposits from Starling accounts to crypto exchanges are prohibited. Customers can continue to withdraw funds from cryptocurrency exchanges into their Starling accounts without limitation. Starling is a mobile-only bank that debuted in the United Kingdom in 2014.

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Other UK banks have not followed suit. According to Decrypt, Barclays has not restricted transfers to cryptocurrency exchanges.

And, contrary to customer difficulties reported by The Telegraph yesterday, Decrypt had no problems transferring money from Monzo to Binance on Sunday afternoon.

NatWest has since Thursday warned customers against crypto traders “promising big profits and offering to help.” The bank has not placed any restrictions on crypto traders.

It advises its customers only to deal with crypto companies fully registered or temporarily registered with the Financial Conduct Authority.

Only five firms have completed their registrations: Ziglu (a crypto-friendly bank created last year by Starling co-founder Mark Hipperson), Gemini Europe Services Ltd, Gemini Europe Ltd, Digivault, and Archax.

While a further 167 crypto companies have outstanding applications, John Glen, MP for Salisbury, on Friday told Parliament that 90% of all companies who have applied withdrew applications “following FCA intervention.”

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