Last week, several UK banks stopped payments to cryptocurrency exchanges, citing worries about fraud and money laundering as the significant reasons for their moves. All three banks, Monzo, Starling, and Barclays, have restricted bitcoin transactions, though they have all stated that this is only a temporary precaution.
Starling Bank’s earlier measures were outlined in a statement provided to The Telegraph by a spokeswoman for the bank:
However, since the publishing of this announcement, Starling has said that, as a result of an upgraded payment review procedure, they will be reversing this measure as of June 23rd. Barclays and Monzo have not responded to questions about their decision to change their stance on bitcoin.
The rise in cryptocurrency scams has prompted the UK banks and several other regulatory organizations and institutions throughout the world to take action. As a result of a slew of coordinated cyberattacks, notably DeFi100, a decentralized DeFi protocol that duped investors and stole $32 million in assets, regulatory agencies and central banks have stepped up their efforts to warn users about the risks of bitcoin explicitly.
Recently, there has been a significant spike in cryptocurrency exit scams, with two Turkish cryptocurrency exchanges allegedly engaging in an exit scam that resulted in 62 persons being detained and users losing a total of $2 billion in Bitcoin.
Banks have beefed up their security procedures in response to findings like these, a global crackdown on security measures for crypto exchanges, and individuals claiming they were victims of crypto-related scams. This signals that regulatory organizations are poised to unveil cryptocurrency regulation, which no major country has fully implemented yet.
Andrew Bailey, the governor of the Bank of England, has commented on cryptocurrencies, calling them “hazardous,” and reiterating the bank’s warning that individuals should exercise caution when investing in cryptocurrencies.