The United Kingdom ranks 7.9 out of 10 for difficulty in accessing banking services, making it one of the most restrictive environments for digital asset firms among major global markets, according to a report by the UK Cryptoasset Business Council (UKCBC).
The report, shared with Yellow.com, finds that UK-based crypto exchanges face significantly greater barriers to basic banking access than peers operating in jurisdictions such as the EU, Singapore, and the United States, despite operating under UK regulatory oversight
UKCBC argues that the score reflects systemic debanking practices rather than isolated compliance decisions, warning that restricted access to fiat rails is undermining the UK’s ambition to establish itself as a global hub for digital assets.
Banking Restrictions Are Widespread And Opaque
According to the report, exchanges estimate that up to 40% of customer transfers from UK banks are blocked or delayed, including payments to firms registered with the Financial Conduct Authority
In every case surveyed, firms reported receiving no explanation from banks when transfers were stopped.
The lack of transparency has created operational uncertainty for exchanges and confusion for customers, the report notes.
Payment restrictions vary widely across banks and can change without notice, making it difficult for firms to manage liquidity, customer support, or compliance expectations.
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UKCBC says the pattern indicates blanket risk exclusion rather than proportionate, risk-based decision-making, with banks treating the sector uniformly regardless of individual firms’ controls or regulatory status
Investment Decisions Being Redirected Abroad
The report warns that restricted banking access is already influencing strategic decisions.
70% of surveyed exchanges said debanking has reduced their willingness to invest, expand, or hire in the UK, while several indicated they are prioritizing other jurisdictions where access to banking services is more predictable
UKCBC frames the issue as a competitiveness problem rather than a niche industry concern.
While the UK government continues to develop a comprehensive crypto regulatory regime under the Financial Services and Markets Act, banks are effectively limiting market participation in advance of formal policy outcomes.
Legal And Regulatory Tensions Highlighted
The report also raises concerns that blanket debanking practices may conflict with existing UK legal frameworks, including the Payment Services Regulations 2017, the FCA’s Consumer Duty, and competition law obligations designed to prevent unjustified exclusion from essential financial services
UKCBC calls for clearer regulatory guidance and greater accountability from banks, arguing that restoring reliable access to banking services is essential if the UK is to retain digital asset firms, talent, and capital.
Without intervention, the report states, the UK risks regulatory clarity on paper but functional exclusion in practice.
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