UK Banks Maintain Crypto Payment Restrictions Ahead of FCA Regime

UK banks have retained restrictions on payments to cryptocurrency exchanges despite the Financial Conduct Authority's (FCA) new authorization gateway set to open on September 30.

The FCA's regime, which is expected to take effect on October 25, 2027, aims to regulate activities such as stablecoin issuance and trading platforms. However, banks have maintained their own limits or outright blocks on payments to crypto exchanges.

A recent study by the UK Cryptoasset Business Council estimated that around 40% of attempted payments from British banks to crypto exchanges are blocked or delayed.

The FCA's guidance does not require banks to provide accounts or payment services to every authorized crypto company, and decisions about providing banking services remain largely commercial in nature. The government expects businesses to be treated fairly, but it does not compel banks to lift blanket restrictions on payments to crypto exchanges.