Crypto▼ Bearish
UK Banks Blocking Up To 40% Of Crypto Transfers, Lawmakers Warn
Around 40% of UK crypto transfers are blocked by banks. Lawmakers say restrictions risk paralyzing market growth and weakening London's ambition as a digital asset hub.
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British banks are blocking or delaying roughly 40% of domestic crypto transfers, according to a survey that has drawn sharp criticism from lawmakers and industry executives. Four-fifths of crypto exchanges reported an increase in blocked transactions over the past year.
Co-chairs of the UK's parliamentary crypto and digital assets group, Lord Vaizey and Gurinder Singh Josan MP, said the restrictions risk stunting the country's nascent crypto boom. They warned that banks locking out digital asset businesses could weaken the effectiveness of rules scheduled to take effect in October 2027.
"Access to banking services is fundamental for any legitimate business," the cross-party group said in July when it opened a formal probe into how mainstream lenders handle accounts for digital asset firms. "Where unnecessary barriers exist they have the potential to hinder growth, investment and innovation."
HSBC, NatWest, Monzo and Nationwide cap monthly transfers to crypto exchanges at between £5,000 and £10,000. Starling Bank and Chase UK have introduced outright prohibitions on crypto transactions, according to the survey data.
The restrictions come as the Financial Conduct Authority has escalated warnings about crypto risk, adding to banks' concerns about regulatory penalties for inadvertently enabling illicit activity. Some bank executives have said the measures are designed to shield customers from growing crypto scams and price volatility.