UK-based bank Starling Bank has temporarily banned its customers from making deposits on crypto exchanges due to concerns about illegal activities, Decrypt reports. A bank spokesperson said:
"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. This is not just an issue for Starling, but for all banks".
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Starling Bank has clarified the restrictions will be lifted once additional checks for such transactions are introduced. Customers can withdraw funds from crypto exchanges to their bank accounts without any problems.
It was previously reported British banks such as Barclays and Monzo are blocking deposits to crypto exchanges. However, a Barclays spokesperson denied such information.
The UK's Financial Conduct Authority (FCA) has previously introduced a temporary registration regime for cryptocurrency firms awaiting regulatory approval. This regime will be in place until next July 9.