Nearly half of UK crypto transfers are blocked by major banks, a UKCBC report says, undermining the government's hub ambitions. One exchange saw £1 billion in declined payments.
Forty percent of payments to UK crypto exchanges are blocked or delayed by major banks, according to a January 2026 report from the UK Cryptoasset Business Council (UKCBC). One exchange alone reported receiving £1 billion in declined transactions over the past year.
The institutions enforcing these restrictions include Chase UK, Starling Bank, Metro Bank, TSB, HSBC, Barclays, and NatWest. All impose blanket transaction limits or outright payment blocks on crypto-related transfers, the report says. These restrictions apply even to exchanges registered with the Financial Conduct Authority, a requirement for digital asset firms under Money Laundering Regulations since 2020.
The report identifies fraud prevention as the primary driver, specifically the Authorized Push Payment (APP) scam reimbursement rules. Under these rules, banks can face significant financial liability when customers fall victim to scams. Exchanges argue that the rules give banks an incentive to block legitimate payments to avoid reimbursement costs.
The banking access problem is getting worse. The report rates the UK at 7.9 out of 10 for banking access difficulty for digital asset firms. A full 80% of surveyed exchanges reported that customer transfer friction increased during 2025. Not a single exchange reported any improvement in customer access to funds.
Seventy percent of exchanges said ongoing debanking practices actively stifled their willingness to invest and hire within the UK. The UK government has been working on a planned cryptoasset regulatory regime scheduled for evaluation and potential implementation by 2027. The report shows a widening gap between the government's stated ambition to become a global digital asset hub and the banking reality.
For traders, the restrictions create a structural risk. Exchanges with solid banking relationships are better positioned to serve customers without friction. A list of best crypto brokers that have navigated these hurdles is one reference point for choosing a platform.
Barclays, one of the named banks, carries an Alpha Score of 59 from AlphaScala, a moderate rating tied to its exposure to regulatory compliance costs in digital asset services. The government's evaluation of new crypto rules is scheduled for 2027.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.