Payments to Crypto currency exchanges


#1

Are payments/transfers to crypto-currency exchanges permitted or restricted in any way? I know some banks like Lloyds have stopped them via credit cards - but wanted to get a view of Starling’s thoughts on this matter.

Thank you.


#2

Not just Lloyds but Virgin Money, Bank of America, Bank of Scotland, Citigroup, Halifax, JP Morgan, MBNA and Capital One.


#3

Yup agreed, there are quite a few more, but also was wondering what’s Starling’s stance was


#4

Yep, just waiting for a Starling staff member to comment. I don’t know what the official line is.


#6

Hi @Kerching1, at Starling we prioritise features which make the most difference to our customers.

Crypto currency is not yet at the top of the list. That being said, we’re excited by the possibilities, so watch this space.

The personal accounts are for personal use only and as a regulated bank we are required to monitor accounts and transactions.

High volume and value transfers will likely trigger security features, and we may require additional information about the source of funds before processing the transaction.


International Transfers Feedback
#7

Thanks Patrick - so on the basis the transactions are legit and can be justified - no issues with transactions to/from exhcnages then?

Thanks


#8

Happy to be corrected, but I understood only credit cards were embargoed by those issuing banks for the purchase of cryptocurrencies. Due to the volatility of crypto’s worth, the banks are anxious to avoid “investors” being able to file claims under Section 75 of the Consumer Credit Act from the card issuer if their currency purchase suddenly devalues.

I understood debit cards from Lloyd’s and others were still okay because debit card purchases don’t benefit from Section 75 protection.


#9

Yes. The banks essentially don’t want you speculating on currency with their money. Do what you like with your own.


#10

Some banks and pseudo-banks won’t allow it at all, even if it’s your own money.

TransferWise for example, their borderless account won’t allow any crypto activity.


#11

I’m ok with Starling restricting with respect to credit cards and understand that. Its a case of my own money and if the purchase of crypto is regulated and/or not illegal then it should be permitted right?


#12

I don’t know what the Starling policy is. Hopefully a member of staff will respond. :slight_smile:

In regards to banks in general - they are private companies and it’s entirely up to them what services they provide, what restrictions those services have, and most importantly, who they provide services to. The customer only has two choices: comply or switch.

The activity may be legal, but if it’s against their terms, then it’s simply not allowed.


#13

Which banks won’t allow it at all?


#14

I gave an example in my post - TransferWise Borderless.

TransferWise blame their partner banks but won’t say who.


#15

Fidor UK is I think one of them


#16

The IBAN would suggest it’s Handelsbanken in Germany.

My SEPA withdrawal from Kraken to my TransferWise Borderless account was frozen on arrival and held for over a week, before finally being returned to sender.

Unfortunately, Kraken wasn’t able to send to my Starling as they don’t recognise the Starling BIC yet. It was an absolute nightmare getting my money out of Kraken.

I’m not even into crypto; it was the one and only time I dabbled. It wasn’t even a large sum of money. It has put me off to say the least (perhaps that is the point).


#17

Perhaps you were inadvertently saved from financial oblivion, Ben :flushed:

Question is, did it “awaken Kraken !!”
(See what I did there? :grinning:)

(It’s OK - it’s a gift :wink:)


#18

For those still left wondering, I use my Starling account in conjunction with aCoinbase account to purchase small amounts of BTC or ETH that I then use to trial different crypto earning games. As has been said most banks don’t mind you spending your money on these things, unless the activity appears unusual. The only other problem could be if anyone decides to buy/sell high volumes then they would need to calculate their taxes or find themselves in trouble that way instead.


#19

@Liam_Rychlik - Thanks for the reply! Much appreciated. The fact that you are already doing this gives me comfort knowing I can use my own my money if I wanted to.


#20

Annoyingly I am going to have to retract my statement. It appears I have actually used my Barclays account with coinbase not starling. I tried to link the account and had no luck. But hopefully issues like that will be sorted out soon, as it’s not just crypto exchanges that don’t seem to accept starling payments.


#21

No probs, that gives me enough also. I will give it a try anyway in a couple of weeks and see what happens to me and will feedback.

Thanks