Key facts
- Stand With Crypto UK is campaigning against banks restricting transfers to crypto exchanges.
- Approximately 40% of attempted UK bank transactions to crypto exchanges are blocked or delayed.
- One exchange reported nearly £1 billion in cancelled transactions due to bank rejections in one year.
- Advocates argue these restrictions hinder consumer access to a legal asset class and undermine the UK's digital asset hub ambitions.
- The campaign encourages Stand With Crypto UK's over 286,000 registered advocates to file complaints with their banks.
- UK regulators are advancing proposals for stablecoin regulation and crypto ETNs.
Crypto advocacy group Stand With Crypto UK has initiated a campaign to pressure banks into lifting restrictions on transfers to cryptocurrency exchanges. The group argues these 'blanket restrictions' impede consumer access to a legal asset class and undermine the UK's stated ambition to become a global digital asset hub.
Stand With Crypto UK is encouraging its over 286,000 registered advocates to file complaints with their banks. The campaign highlights findings from a UK Cryptoassets Business Council report, which indicated that approximately 40% of attempted transactions from UK banks to crypto exchanges are either blocked or delayed. The report also found that 80% of exchanges have experienced increased customer friction over the past year, with one exchange reporting nearly £1 billion in cancelled transactions due to bank rejections.
Adriana Ennab, Director of Stand With Crypto UK, stated that consumers should be treated as individuals rather than subjected to one-size-fits-all policies. This push comes amid incremental steps by UK regulators to integrate digital assets, such as proposals allowing investment funds to hold up to 10% in crypto exchange-traded notes. However, crypto investors continue to identify accessible banking services as a major obstacle.
Katie Harries, Coinbase's head of policy for Europe, commented that while the government aims to make the UK a digital asset hub, banks are hindering the crucial on-ramp from fiat currency into crypto. Mark Fairless, CEO of UK clearing bank ClearBank, told Cointelegraph that banks should take a risk-based approach to crypto-related payments rather than imposing broad restrictions across the sector, as broad blocks risk undermining competition and the ability of regulated firms to operate effectively.