Bank Block Rate Nears 40% as Stand With Crypto UK Pushes Complaints

Coinbase-backed advocacy group Stand With Crypto UK (SWC UK) has told its 286,000 members to file formal complaints against retail banks that restrict cryptocurrency transfers. The campaign targets institutions that block or limit customer payments to FCA-authorised exchanges – a practice that data shows affects roughly 40% of domestic crypto transactions.

The figure comes from the UK Cryptoassets Business Council's January 2026 "Locked Out" report, which surveyed Coinbase, Kraken, Gemini, Bitpanda, OKX, Luno, Uphold, Wirex, Xapo Bank and Zumo. Eighty percent of those exchanges said blocked transfers had increased over the past year. One exchange told the report's authors that banks rejected up to £1 million in customer transactions during a single year.

Which banks block and which limit

Institutions including Chase UK, Starling, TSB, Virgin Money and Metro Bank enforce full bans on transfers and card payments to crypto exchanges. Others – Barclays, HSBC, Nationwide, NatWest, Santander and Monzo – apply strict transaction limits on customers buying digital assets. SWC UK argues that blanket policies penalise all customers regardless of individual risk profiles.

HM Treasury waded into the issue in January 2026, stating that FCA-authorised crypto firms should not face unnecessary account or transaction restrictions. The statement aligns with the government's stated ambition to turn the UK into a global hub for digital assets and Web3 innovation – an ambition that SWC UK says current banking practices undermine.

Several banks that limit crypto transfers are also exploring blockchain-related services internally, the group noted. That tension between retail access and institutional experimentation is at the heart of the campaign.

Adriana Ennab, director of Stand With Crypto UK, said consumers are being prevented from accessing a legal asset class by broad policies that treat all customers the same. Katie Harries, Coinbase's head of policy for Europe, added that widespread retail participation is necessary if the UK wants to become a leading destination for crypto and Web3 development.

The campaign follows a separate push documented by AlphaScala earlier this year, UK Crypto Group Targets Bank Restrictions on Exchange Transfers, which examined similar friction in the banking-crypto pipeline. Separately, data from the FCA shows roughly 8% of UK adults now own crypto – a share SWC UK argues the banking system is under-serving.

Barclays, which imposes transaction limits, carries an AlphaScore of 59 – a Moderate label in the Financial Services sector. That reading suggests limited institutional conviction around its crypto stance, though the bank has not publicly changed its policy in response to the campaign.

Roughly 8% of UK adults now hold crypto, according to FCA data – a share SWC UK argues the banking system is under-serving.