Three major banks have banned all payments and transfers to multiple cryptocurrency exchanges. The information provided by Crowdfund Insider reports a large-scale blockade for millions of Barclays customers, but also for the neobanks Monzo and Starling Bank.
These UK entities have reportedly responded to the numerous cryptocurrency scams that have affected individuals over the past few months. As of the beginning of the year, a study referred to by our colleagues puts the total amount withdrawn by fraud at £ 60 million, or nearly € 70 million.
At this point in time, we do not know whether the state has put pressure on the companies to take such sudden measures.
Starling Bank is a Neobank that is closely related to the Revolut model and has almost 2 million open checking accounts. She was the most transparent about the situation. Your customers can no longer make transfers or payments by bank card to platforms “such as Binance or Swiss Borg”.
Management said the current lockdown measures affect all of its customers. However, these would only be “temporary measures” and to protect customers. It’s hard to understand how such a move would be temporary and how long Starling Bank will ban these popular cryptocurrency buying platforms.
Monzo and Barclays will pursue the same action and Crowfund Insider reminds that the current context in England regarding cryptocurrencies is very tense. Bank of England Governor Andrew Bailey had previously said that cryptocurrencies could be “dangerous”. At the same time, 10 million UK residents own digital assets in 2021 (up 558% from 2018).
Since the middle of May, many private individuals will have lost very large sums of money as doubts have conquered the markets. Bitcoin’s price correction brought the digital king token from nearly $ 58,000 to $ 35,000, a 37% drop that wiped hundreds of billions of dollars.
In the area of stock market investment platforms, the same phenomenon can be observed in the opposite direction. For example, the Dutch platform Degiro, available in France, refuses to allow its customers to receive funds from certain neobanks such as Revolut and N26.