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UK Starling bank to resume crypto exchange deposits in late June

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The press service of the British bank Starling said that by the end of June it plans to resume servicing accounts associated with cryptocurrency exchanges and services.

The suspension, which was announced last week, will last approximately until June 23.

Starling’s ban on sending deposits to cryptocurrency exchanges

British bank Starling has temporarily banned its clients from sending deposits to cryptocurrency trading platforms. Due to the risks of committing financial crimes.

On May 31, Starling Bank suspended transfers due to concerns about illegal activity. Then the organization said that the problem is relevant for “all banks.”

Starling customers prohibited from sending money from their accounts to cryptocurrency exchanges. While they can withdraw funds from there to Starling accounts without restrictions. The bank’s management forced to take such measures to protect customers. There are suspicions that the funds transferred to cryptocurrency exchanges could be used for criminal activity, as the number of financial crimes has been increasing recently.

The bank will lift the ban after introducing additional checks that Starling clients will have to go through when transferring funds to cryptocurrency exchanges.

The Starling Bank team plans to return clients access to replenishment of accounts of cryptocurrency exchanges after bankers can launch mechanisms for additional control of such operations. The bank representatives noted that the restrictions apply exclusively to the transfer of funds to deposits of trading crypto platforms. Withdrawals from digital asset exchanges to Starling Bank accounts are still available.

Bans of other credit institutions

A spokesman for the British bank stressed that the decision to terminate operations related to crypto exchanges wasn’t made only by Starling.

Other credit organizations also took similar measures after consulting with parliamentarians who advocate legal recognition of such trading platforms.

Other UK major banks Barclays and Monzo also went on to suspend service of accounts linked to Bitcoin platforms. Representatives of these giants have not yet published any official comments on this matter.

NatWest recently warned clients against working with cryptocurrency firms offering investment assistance and promising big returns. The bank has announced its readiness to stop serving digital asset firms, but has not yet imposed any restrictions. NatWest recommended its clients to cooperate only with those cryptocurrency companies that have received a license from the UK FCA.

However, other financial institutions in the UK have not yet taken such a categorical position in relation to cryptoassets.

Temporary registration mode for cryptocurrency companies

Earlier, the UK Financial Conduct Authority (FCA) introduced a temporary registration regime for cryptocurrency companies awaiting regulatory approval. It will run until July 9, 2021.

At the moment, the FCA register includes five companies, two of which associated with the Gemini crypto exchange. Applications from more than 160 organizations still considering.

We will remind, the Member of Parliament of Great Britain Tom Tugendhat urged the authorities to pay attention to cryptocurrencies and create space for their development.