UK Banks Block 40% of Bitcoin Transfers Amid Regulatory Scrutiny
Britain's banking sector has been accused of maintaining blanket restrictions on bitcoin transactions, despite government assurances that banks should assess risks on a case-by-case basis. According to Bitcoin Policy UK, roughly 40 percent of bank-to-exchange transfers in the UK are currently blocked or delayed.
The association presented evidence to an all-party parliamentary group (APPG) on crypto and digital assets, highlighting the impact on businesses and individual investors. Virgin Money, Metro Bank, Starling Bank, TSB, and Chase UK are fully blocking transfers to exchanges and card payments, while Barclays and HSBC are limiting transfers to 2,500 pounds ($3,310) per transaction.
The restrictions have worsened for exchanges, with 80 percent reporting a tightening of regulation over the past year. Bitcoin Policy UK has made four demands to the parliamentary inquiry, including a statement from regulators that blanket restrictions should not be applied to bitcoin activity through exchanges registered with the Financial Conduct Authority (FCA).