Crypto lobbying groups and lawmakers in UK have been complaining that crypto clients can’t find a bank and are faced with restrictions, so they are asking the government for help.
According to advocates for the crypto industry, numerous banks in the U.K. are imposing restrictions on their interaction with the sector, making it difficult for many crypto companies to obtain banking services.
This problem is not unique to the U.S., where Silvergate and Signature banks have collapsed, forcing crypto clients to seek new banking partners. Since 2021, the U.K. has been grappling with a similar crypto banking issue.
In a letter to the Treasury’s Economic Secretary Andrew Griffith, Su Carpenter, the director of operations at CryptoUK, expressed concern that many major U.K. banks have already imposed bans or restrictions, and others may soon follow suit. CryptoUK is a lobbying group that advocates for digital assets.
People have taken to Twitter to complain that U.K. banks are banning transfers to crypto exchanges. Lisa Cameron, a member of Parliament and the chair of the Crypto and Digital Assets group, recently raised the issue in parliament, stating that crypto businesses have been unable to open bank accounts with Santander and NatWest Group.
In response, a spokesperson for NatWest said that the bank does not currently offer banking facilities to businesses that buy or sell cryptocurrencies, and that they make all decisions about onboarding new businesses on a case-by-case basis. Similarly, Santander’s spokesperson told CoinDesk that the bank limits transactions to crypto exchanges and does not support buying and selling of cryptocurrencies.
Several U.K. banks have been pulling away from the crypto industry due to concerns around volatility, stability, and fraud. NatWest has been blocking retail and wealth customers from transferring into crypto assets, and has limited customer payments to crypto exchanges to protect consumers from “crypto-criminals.”
Other banks like Nationwide and HSBC have also announced restrictions on crypto purchases, while Starling bank has never directly banked crypto companies and no longer supports the buying and selling of cryptocurrencies.
Crypto Banking Ban
In summary UK crypto companies are struggling to secure banking services as many banks are imposing restrictions on their interaction with the sector, according to crypto advocates. This problem has existed in the UK since 2021, and major banks have already put in place bans or restrictions. Many lobby groups including CryptoUK, has expressed concerns that other banks and payment service providers may follow suit, limiting the industry’s growth.