UK Starling bank to resume crypto exchange deposits in late June

Starling blocked crypto exchange deposits last week, citing “high levels of suspected financial crime with payments to some cryptocurrency exchanges.”

Starling, a United Kingdom-based online bank, is preparing to resume payments to cryptocurrency exchanges after suspending crypto exchange deposits last week.

A spokesperson for Starling told Cointelegraph on Tuesday that the bank is set to restart payments to crypto exchanges on June 23 after temporarily suspending the feature as a measure to protect its customers.

Starling blocked payments to some cryptocurrency exchanges last week, citing “high levels of suspected financial crime with payments to some cryptocurrency exchanges.” The bank said that it will reverse the measure after adopting “additional checks specifically for payments to crypto exchanges.”

The spokesperson stressed that the action was “not an issue for Starling, but for all banks,” referring to official Parliamentary comments regarding the legal status of crypto exchanges in the United Kingdom. John Glen, a member of the U.K. Parliament for Salisbury and the conomic secretary to the Treasury, said last Friday that only five companies were authorized by the Financial Conduct Authority to operate a crypto business in the country.

According to data from the FCA official website, these companies includee two Gemini-affiliated firms, Gemini Europe Services and Gemini Europe, Diginex’s Digivault, crypto-friendly bank Ziglu, and Archax exchange.

“Of the firms assessed to date over 90% have withdrawn their application following FCA intervention. There are 167 crypto asset businesses with outstanding applications,” Glen stated.

The latest regulatory remarks came after some British banks like National Westminster Bank, or NatWest, reportedly warned its customers about crypto scams and fraud. Some users reported that NatWest sent a related warning to clients last Thursday.

Crypto warning being shown in the NatWest app pic.twitter.com/FZ235rYHN6

— Sam Shead (@Sam_L_Shead) May 27, 2021

According to a report from The Telegraph on Saturday, other U.K. banks like Barclays and Monzo have also blocked users from transferring money to some cryptocurrency platforms. Barclays and Monzo did not respond to Cointelegraph’s request for comment.