UK Banks Impose Restrictions on Crypto Transactions Amid Regulatory Changes
- The Financial Conduct Authority (FCA) lists only 59 registered crypto asset companies, including exchanges like Coinbase, Kraken, and Gemini.
- 80% of surveyed exchanges reported increased customer issues with bank transfers in the past year.
- 70% of exchanges described the banking environment as more hostile compared to the previous year.
- Major banks like HSBC, Barclays, and NatWest impose limits on transfers to crypto exchanges.
- One exchange noted $1.4 billion in declined transactions due to bank rejections.
Despite the FCA’s efforts to regulate the cryptocurrency sector more openly, banks continue to restrict access for customers wishing to engage with crypto platforms. This ongoing situation poses significant challenges for the growth of the UK’s digital asset economy.
With banks blocking or limiting transactions, nearly $1.4 billion in potential business was lost due to rejections in a single year, highlighting a critical barrier for registered crypto businesses in the UK.
