Nearly half of customer payments to cryptocurrency platforms face blocks or delays from UK banks, according to a survey of major exchanges that handle billions in monthly transactions.
The UK Cryptoasset Business Council surveyed 10 regulated exchanges including Coinbase, Kraken and Gemini.
The report estimates 40% of transactions to crypto platforms encounter restrictions despite many recipients holding Financial Conduct Authority registration.
One exchange recorded close to £1 billion in declined transactions from UK bank rejections over the past year. The figure captures only visible card payments and open banking transfers, suggesting actual blocked volume runs materially higher.
What Happened
Six UK banks fully block transfers to crypto exchanges. Virgin Money, Metro Bank, Starling Bank, TSB, Chase UK and Wise prohibit bank transfers entirely, while Wise permits debit card payments.
Eight additional institutions impose transaction limits. Barclays and HSBC restrict transfers to £2,500 per transaction with £10,000 monthly caps. NatWest allows £1,000 daily and £5,000 monthly.
Santander limits individual transfers to £1,000 with £3,000 monthly maximums.
Only Revolut and Lloyds Group permit unrestricted transfers among major UK banks surveyed. Nationwide maintains a £5,000 daily limit while allowing unlimited monthly volume.
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Industry Impact
Eighty percent of surveyed exchanges reported increased customer friction over the past 12 months. None saw improvement in banking access conditions.
Seventy percent of platforms confirmed restrictions reduce investment appetite and hiring plans in the UK market. Exchanges rated Britain 7.9 out of 10 in difficulty accessing banking services compared to other jurisdictions, with five assigning ratings of 8 or higher.
The surveyed firms collectively serve millions of UK customers, process hundreds of billions in transactions and employ thousands domestically.
Several operate as global unicorns with UK headquarters.
Regulatory Context
Banks apply blanket policies without distinguishing between FCA-registered platforms and unregulated services, exchanges reported. None receive explanations for payment blocks.
The UK Treasury laid Financial Services and Markets Act 2000 regulations for cryptoassets in December 2025.
Full implementation arrives October 2027, though current restrictions affect even compliant firms operating under existing FCA registration.
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