UK Banking Restrictions Stifle Digital Asset Adoption

The UK's goal of becoming a global hub for digital assets is being hindered by banking restrictions that block or delay transactions to exchanges. According to Bitcoin Policy UK, around 40% of bank-to-exchange transfers are currently restricted. This issue has been ongoing since the group first raised concerns about blanket banking restrictions with the City Minister nearly three years ago.

Several major banks in the UK, including Virgin Money, Metro Bank, Starling Bank, TSB, and Chase UK, block crypto transactions or card payments outright. Barclays and HSBC cap transfers at £2,500 per transaction. This has resulted in a significant number of exchanges being unable to open and maintain bank accounts with major banks.

A January 2025 survey found that half of firms had either been refused a bank account or had one closed. Only 14% opened and maintained an account with a major bank. Bitcoin Policy UK is calling for clearer regulatory guidance, specific reasons when transactions are rejected, an appeals process, and recognition that FCA registration can serve in risk assessments.