UK Banks Still Blocking Bitcoin Transactions Amid Government Promises

UK banks are still blocking Bitcoin transactions, despite government promises to improve access. According to a recent submission by Bitcoin Policy UK to a parliamentary inquiry, no progress has been made in the past three years to address the issue. The organization points out that British policy treats 'crypto' as one entity, catching Bitcoin with rules written for unbacked tokens and issuer-dependent stablecoins.

The problem stems from the government's approach to regulating cryptocurrency, which lumps all types of crypto together, leading to blanket restrictions on lawful Bitcoin activity. This has resulted in roughly 40% of bank-to-exchange transfers being blocked or delayed, with some banks outright blocking transactions and others capping transfers at £2,500.

Bitcoin Policy UK is calling for a regulatory statement that would exempt Bitcoin activity through an FCA-registered exchange from blanket restrictions. They also request that banks provide specific reasons for rejecting Bitcoin-related activity and establish an appeals route.