UK Banks Block Bitcoin Transactions Despite Government Guidance

UK banks have continued to block Bitcoin transactions despite government assurances that they should assess each case individually. The issue stems from how UK policy treats 'crypto' as a single entity, catching Bitcoin in with rules written for unbacked tokens and issuer-dependent stablecoins.

The British government has maintained since 2023 that banks should not restrict Bitcoin activity by sector but rather on a case-by-case basis. However, evidence submitted to the Crypto and Digital Assets APPG's parliamentary inquiry shows little improvement over the past three years.

According to data, around 40% of bank-to-exchange transfers in the UK are currently blocked or delayed. Bitcoin Policy UK has expressed frustration with the situation, stating that practice has not followed government guidelines and the gap is widening as the country moves toward full implementation of its cryptoasset regime in 2027.