UK campaign asks banks to stop blocking crypto transfers

Stand With Crypto UK launched a campaign on Wednesday urging banks to remove blanket restrictions that block transfers from UK bank accounts to cryptocurrency exchanges, including platforms registered with the Financial Conduct Authority.

The group referenced the UK Cryptoassets Business Council's “Locked Out” report, released earlier this year, which found roughly 40% of attempted bank-to-exchange transactions were blocked or delayed. The report said 80% of exchanges reported increased customer friction over the past year, and one exchange recorded about £1 billion in cancelled transactions in a single year because banks rejected payments.

Stand With Crypto UK asked its more than 286,000 registered UK advocates to file formal complaints with their banks to press lenders to remove sector-wide blocks and to assess transfers on a case-by-case basis.

Adriana Ennab, director of Stand With Crypto UK, wrote in a statement that banks had imposed “blanket restrictions” that prevent people from accessing a legal asset class. “People across the UK are being blocked from accessing a legal asset class because banks have chosen to impose blanket restrictions on an entire sector,” she wrote. “Consumers should be treated as individuals, not subjected to one-size-fits-all policies.”

Katie Harries, head of policy for Europe at Coinbase, warned that banks were restricting the main route for retail users to convert fiat money into crypto, even while the government has promoted the UK as a hub for digital assets and Web3.

Regulatory developments this year include a Financial Conduct Authority proposal to allow investment funds to allocate up to 10% of assets to crypto exchange-traded notes and the restoration of tax-advantaged access to such notes through the Innovative Finance ISA framework. The House of Lords Financial Services Regulations Committee has said Britain risks falling behind the United States and the European Union on stablecoin rules.

Stand With Crypto UK argued that blocking transfers to compliant exchanges can create customer service problems for exchanges and can prevent individuals from accessing products or responding to market movements. The group recommended that banks adopt more granular transaction monitoring instead of sector-wide bans.

The campaign release did not include comments from banks, and the report did not detail reasons why individual lenders rejected or delayed specific transactions. The group invited affected customers to raise formal complaints with their banks to prompt policy reviews and clearer guidance on permitted transfers to regulated crypto firms.

Campaigners described the effort as an attempt to align banking practices with recent regulatory and market changes while preserving customer access to regulated crypto services.