UK banks block or delay 40% of crypto exchange transfers: Survey

A recent report from the UK Cryptoasset Business Council has revealed that a significant number of major banks in the United Kingdom are either blocking or delaying transfers to cryptocurrency exchanges. This trend affects approximately 40% of all transactions intended for these platforms, raising concerns about the accessibility of crypto services for users in the country.

According to the findings, many banks have adopted broad restrictions on transactions associated with cryptocurrency exchanges, effectively creating barriers for individuals looking to engage with digital assets. The report highlights that these measures may lead to a de facto debanking of crypto users, as financial institutions exercise caution in dealing with the rapidly evolving crypto landscape.

The survey indicates that while some banks are open to processing these transfers, a substantial portion has chosen to impose strict limits or outright bans. This cautious approach is likely influenced by the regulatory uncertainties surrounding cryptocurrencies, as well as concerns regarding money laundering and fraud.

The study emphasizes the need for clearer regulatory frameworks to address the challenges posed by cryptocurrencies. Advocates for the crypto industry argue that better guidelines could encourage banks to be more accommodating towards crypto transactions, ultimately fostering innovation and investment in the sector.

As the crypto market continues to grow and mature, the report calls for a collaborative effort among regulators, banks, and industry participants to create a balanced environment that supports both consumer access and financial security. Without such measures, the current trend of restrictive banking practices could hinder the UK's position as a competitive player in the global cryptocurrency market.

The findings of this report underscore the importance of addressing the existing barriers that crypto users face, highlighting a crucial area for improvement in the relationship between traditional banking and digital currencies.

Key Takeaways

Nearly 40% of transfers to crypto exchanges are blocked or delayed by major UK banks.
Many banks are implementing blanket restrictions on transactions linked to cryptocurrencies.
The report calls for clearer regulations to improve banking access for crypto users.
Collaborative efforts among banks, regulators, and industry stakeholders are essential for a balanced crypto ecosystem.

This article was inspired by reporting from CoinTelegraph. · Report an issue