According to the article, Starling customers may no longer make purchases of cryptocurrencies such as Bitcoin (BTC) or even receive transfers from cryptocurrency merchants or exchanges.

In the meanwhile, the financial institution that issued the blanket ban highlighted the substantial risks associated with cryptocurrency trading as the basis for the decision. The bank believes that digital currencies are fraught with danger and are employed for illicit activities.

According to a statement made by a Starling Bank spokeswoman, the financial institution has been functioning with various limits on cryptocurrency transactions for some time. The most recent prohibition, on the other hand, does little more than increase the restrictions placed on outward and incoming transactions that include bank transfers and cards.

"Both the cutting-edge technology and the original idea behind cryptocurrencies provide enormous potential benefits. However, there is a substantial risk associated with them at the moment because they are often used for illegal purposes. As a result, we do not support them in any capacity," the statement continued.

The bank's measures come at a time when there is ongoing debate within the sector over FTX. Before its most recent failure, FTX was previously counted among the most important cryptocurrency exchanges in the world.

It has been alleged that the corporation, along with its sibling company Alameda, misappropriated monies belonging to customers. According to the bankruptcy case filed by FTX, the business owes more than $3 billion to 50 of its top creditors, bringing the overall number of debtors to more than 1 million.

Transactions using cryptocurrencies are prohibited by UK banks.

In the meanwhile, some participants in the cryptocurrency business say that certain banking restrictions on cryptocurrency activities are reasonable. However, they are of the opinion that a complete prohibition is not the best solution.

In addition, this is not the first time that Starling has put restrictions on activities that are connected to cryptocurrencies. The bank placed a temporary restriction on remittances to cryptocurrency exchanges in May of the previous year.

It stated that there was a "high rate of potential financial crimes with payments to some exchanges," which expressed similar worries. After a month, Starling launched its activities in the cryptocurrency trading market.

The most recent restriction, however, comes just a few short weeks after another bank in the UK imposed limitations on deposits. A few of weeks ago, Santander UK imposed a cap of £1,000 ($1,196) per transaction on the amount that consumers may deposit to cryptocurrency exchanges.

In addition, the maximum every month is 3,000 pounds, which is equivalent to $3,588. Sadly for the cryptocurrency industry, virtually all UK banks have implemented a blanket prohibition on any and all transactions using cryptocurrencies.

For example, in June of last year, TSB bank informed its more than 5.4 million customers that it would no longer permit cryptocurrency purchases. Since 2014, several banking institutions such as NatWest, Virgin, and Lloyds have prohibited the use of credit cards to purchase cryptocurrency.