Starling Bank Halts Crypto Card Payments Citing ‘High Risk’

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Star­ling Bank, a dig­i­tal chal­lenger bank based in the UK, halt­ed the cryp­to card pay­ments, cit­ing that cryp­to activ­i­ties are “high risk.”

Star­ling Bank is a dig­i­tal chal­lenger bank, hav­ing more than a mil­lion accounts in the UK. Dig­i­tal chal­lenger banks are banks that don’t have any phys­i­cal branch­es. The bank oper­ates entire­ly online.

Starling Bank Halted Crypto Transactions.

A Star­ling Bank cus­tomer received a noti­fi­ca­tion that the bank no longer sup­ports cryp­to trans­ac­tions. The cus­tomer then ques­tioned the bank on Twit­ter, to which they got a reply that the bank is review­ing its posi­tion against finan­cial crimes and con­sid­ers cryp­to activ­i­ty as “high risk.” The bank has imple­ment­ed fur­ther restric­tions on ongo­ing and incom­ing cryp­to transactions.

A spokesper­son from Star­ling quot­ed to Sift­ed:

“The inno­v­a­tive tech­nol­o­gy, and think­ing, behind cryp­tocur­ren­cies, has great poten­tial advan­tages, how­ev­er, right now, they are high risk and heav­i­ly used for crim­i­nal pur­pos­es and, as such, we no longer sup­port them.”

The Crypto Crackdown Continues After FTX

The recent FTX col­lapse has led reg­u­la­tors to view the cryp­to indus­try under scruti­ny. The Attor­ney Gen­er­al of New York, Leti­tia James, urged the US Con­gress to pro­hib­it peo­ple from pur­chas­ing cryp­tocur­ren­cies with their Indi­vid­ual Retire­ment Accounts (IRA). 

“On behalf of the Peo­ple of the State of New York, I urge Con­gress to pass leg­is­la­tion to des­ig­nate dig­i­tal assets—e.g., cryp­tocur­ren­cies, dig­i­tal coins, and dig­i­tal tokens—as assets that can­not be pur­chased using funds in Indi­vid­ual Retire­ment Accounts (“IRAs”) and defined Page 2 con­tri­bu­tion plans, such as 401(k) and 457 plans.”

The let­ter also men­tioned that cryp­to trad­ing plat­forms lack cus­tomer pro­tec­tion and trans­paren­cy. Leti­tia James explained the point with the exam­ple of Nathaniel Chas­tain, the for­mer OpenSea Employ­ee charged with NFT insid­er trad­ing. It is alleged that the for­mer prod­uct man­ag­er used fore­knowl­edge of OpenSea’s list­ing to rake in huge profits.

Got some­thing to say about this cryp­to crack­down or any­thing else? Write to us or join the dis­cus­sion on our Telegram chan­nel. You can also catch us on Tik Tok, Face­book, or Twit­ter.

For BeInCrypto’s lat­est Bit­coin (BTC) analy­sis, click here.

Disclaimer

All the infor­ma­tion con­tained on our web­site is pub­lished in good faith and for gen­er­al infor­ma­tion pur­pos­es only. Any action the read­er takes upon the infor­ma­tion found on our web­site is strict­ly at their own risk.



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