UK banks block 40% of crypto transfers, threatening fintech

UK banks now block or delay 40% of crypto transfers, with restrictions rising. This trend threatens the UK's fintech ambitions and hampers crypto sector growth.

Recent reports indicate that UK banks are increasingly blocking or delaying transfers to cryptocurrency exchanges, affecting around 40% of such transactions. Data from the UK Cryptoasset Business Council, based on the ten largest centralized exchanges, shows that eight out of ten platforms have experienced a rise in payment issues over the past year, with none reporting fewer restrictions. These challenges persist even when customers use regulated platforms. Some exchanges have seen nearly £1 billion in declined transactions due to bank-side rejections. Major banks like Virgin Money and Chase UK have cut ties with crypto exchanges, while others enforce strict limitations. The UK Cryptoasset Business Council criticizes these broad banking policies, arguing they hinder the crypto sector's growth and undermine the UK's ambitions to be a global fintech leader. There are increasing calls for clearer regulatory guidance as the banking environment grows more hostile to digital asset activities.