UK Banks Block Over 40% of Crypto Payments Amid Regulatory Uncertainty

The UK's banking system is restricting access to cryptocurrencies for millions of customers. According to a report by the UK Cryptoasset Business Council, approximately 40% of domestic payments to cryptocurrency exchanges are blocked or delayed by British banks.

An investigation by the US Office of the Comptroller of the Currency found that nine national banks maintained policies that restricted access for certain lawful customers between 2020 and 2023. The UK's Payment Systems Regulator introduced mandatory reimbursement rules in October 2024, making banks liable for up to £85,000 per incident when customers fall victim to authorized push payment fraud.

Banks in the UK have applied various measures to restrict crypto transactions, including hard transaction caps and outright bans. For example, NatWest caps crypto payments at £1,000 daily and £5,000 monthly, while HSBC allows £2,500 per transaction with a £10,000 monthly ceiling.

The US Department of Justice issued subpoenas to JPMorgan Chase, Bank of America, and Wells Fargo in June 2026 over alleged politicized account closures. The GENIUS Act, signed in July 2025, creates federal oversight of stablecoin issuers, potentially reducing regulatory ambiguity cited by banks as justification for restrictions.