In the wake of the recent crypto exchange downfall, administrations, crypto entities and banks are making certain changes to the utilization of cryptocurrencies worldwide. The US and UK governments are taking legal action to implement crypto regulations in their respective states. Recently London-based Starling Bank announced that it would impose restrictions on crypto transactions.
“Better regulations are needed to protect the financial system after the collapse of the FTX cryptocurrency exchange,” the spokesperson of the Bank of England stated.
Starling, a digital bank, stated there is a high risk for digital assets in today’s crypto world. Many cyber attackers stole dollars worth of crypto assets from different crypto platforms. So the entity decided to ban the activities which are related to crypto on users’ cards. The users of Starling will no longer buy or sell digital assets from crypto exchanges.
The spokesperson of Starling stated, “we always review our position in relation to financial crime. We consider crypto activity to be high risk. We have taken the decision to prevent all card payments to crypto merchants and to implement further restrictions on outgoing and incoming transfers.”
It is not the first time that Starling blocked cryptocurrency transactions on users’ accounts. In May 2021, Starling restricted users’ from buying crypto assets due to many cyber attacks on cryptocurrency in March 2021. After a month, Starling resumed the transactions on the user’s account. Starling is one of the top-rated banks in the United Kingdom, and it received the Best British Bank Award for four consecutive years 2018, 2019, 2020, and 2021.
Recently Santander, one of the popular banks in the UK, limited crypto exchange deposits to 1,000 British pounds ($1,196) per transaction and 3,000 ($3,588) per month. In 2021 TSB banned 5.4 million users from buying the major cryptocurrency, bitcoin.
Banks That Banned Cryptocurrency In The United Kingdom
Recently a survey was conducted on the top UK banks to know whether they are interested in introducing cryptocurrency transactions on their users’ accounts. As crypto markets are unregulated in the UK, 47% of the banks refused to support digital assets. The Financial Conduct Authority (FCA) recently said, “if you invest in crypto assets, you should be prepared to lose all your money.”
The banks That Didn’t Support Crypto In The UK
- TSB Bank
- Metro Bank
- First Direct
The Banks That Support Crypto In The UK
- Lloyds Bank
- Bank of Scotland
Why did the UK Ban Binance In The Country?
Last year the UK government restricted the utilization of Binance in the nation. UK’s financial regulator, FCA, stated that three-quarters of crypto users are likely to have lost money on their cryptocurrency investments. “Binance Markets Limited is not permitted to undertake any regulated activity in the U.K,” FCA stated.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.