Banks in UK halt crypto transfer

TL;DR Breakdown

• UK Banks skeptical about crypto transactions.
• Direct deposits to crypto wallets suspended by banks in UK.

Top tier banks in the United Kingdom like Barclays, Starling, and Monzo have suspended transfers to crypto wallets primarily due to fears of financial crimes.

Local reports in the UK confirm that these banks temporarily suspended payments to these banks owing to fears of financial crime opportunities such transactions pose.

Reportedly, UK residents have lost over £60 million in the last year in social media investment fraud scams, with nearly half of those scams being related to cryptocurrency in one way or another.

Starling bank also confirmed that the measure is temporary and became necessary to protect customers. Bank customers would be able to transfer from their accounts to their crypto wallets after additional checks are introduced to check transfers to crypto exchanges.

UK Bank regulators still skeptical on cryptocurrencies

The suspension by banks in the UK came in the wake of the continued fear regulators in the country have for cryptocurrencies.

Andrew Bailey, the Bank of England Governor, called cryptocurrencies dangerous. Since last year, he has remained skeptical when he said anybody holding BTC should be ready to lose all their money.

TheCityUK, a private-sector membership body and industry advocacy group promoting the UK’s financial and related professional services industry, also called for more consumer protection due to the rise in the number of people investing in crypto.

The group has recorded a 558 percent surge in the number of crypto investors in the country from 2018 till now.

Other financial firms in UK also express worry for crypto

Beyond banks, card service providers and other financial firms have warned customers against crypto activities.

HDFC Bank, the leading private sector bank in India, cited 2018 Reserve Bank of India (RBI) guidelines. More specifically, stating that “virtual currency transactions” were prohibited. It also instructed those suspected of “probable virtual currency transactions” to report to their nearest HDFC branch.

Card services provider SBI Card also issued a similar warning email to its customers.