British banks are blocking customers from accessing their accounts when trying to acquire digital currencies on crypto exchanges.
Lately, Barclays, Starling, and Monzo clients have been unable to transfer their funds on exchange platforms when tried to buy digital assets due to a temporary measure taken by the banks.
The action was taken from these institutions amid fear of an increase in financial fraud through cryptocurrencies. According to recent reports, British citizens have lost nearly 60 million pounds due to scams the last year.
Banks are trying to protect their customers while the number of people holding digital assets is growing rapidly in the United Kingdom. Over 10 million individuals own crypto in 2021 until now. The number has increased by 558% since 2018.
Spokesmen at Starling have declared that this measure is temporary. They intend to undo it as soon as they will be able to launch supplementary checks for transfers involving digital currencies to make their clients’ accounts safer.
Financial institutions in the United Kingdom aren’t the only ones to put a stop to these kinds of transactions. Last week, HDFC Bank, a private sector bank in India, sent its clients emails warning them regarding crypto activities.
The email stated that Virtual Currency transactions were not allowed due to RBI guidelines. The bank then proceeded to require these clients to visit one of the HDFC branches within 30 days to clarify the nature of these transfers. If they fail to do so, the institution “will be compelled to restrict transactions in your account without any further notice.”