Banks are cracking down on transfers to cryptocurrency exchanges by stopping payments to the sector amid mounting fears that it has become a hotbed of financial crime.
Customers of banks such as Barclays, Monzo and Starling are said to have been prevented in recent weeks from transferring money to cryptocurrency platforms such as Binance and SwissBorg.
Starling, the online bank, has gone the furthest in suspending all payments to cryptocurrency exchanges after discovering that there was a high level of suspicion of financial crime with that payment.
A spokesperson said, “This is a temporary measure we have taken to protect customers.
“This is not just a problem for Starling, but for all banks. We apologize for the inconvenience this has caused to some customers. We will reverse this measure if we introduce additional checks specifically for payments to crypto exchanges. “
Cryptocurrency users have been using social media for the past few days to complain about the various raids.
A Barclays customer wrote on Twitter that he was banned from online banking after attempting to transfer a large amount to Binance. “It took two 90-minute phone calls to complete the broadcast,” they said.
One Monzo customer who was told they couldn’t send money to SwissBorg wrote: “Does anyone know a bank to switch to and isn’t acting like Big Brother is telling me who to send money to? “
After a Starling customer complained to Reddit that their cryptocurrency transfers had been blocked due to the new ban, one user responded, “I can imagine this is becoming increasingly common for crypto users.”