- UK banks are banning transfers to crypto exchanges
- They argue this is to protect consumers from crypto-related crimes
Many UK crypto companies are having a hard time finding banking services because multiple banks are distancing themselves from the industry, CoinDesk reported, citing crypto advocates.
After Silvergate, Silicon Valley, and Signature collapsed in the US, US crypto firms started looking for new partners, but the US is far from the only country that has this problem. The UK has had issues with crypto banking for at least two years.
Crypto firms can’t open bank accounts
On Twitter, people have been complaining that UK banks are banning transfers to crypto exchanges. According to MP Lisa Cameron, crypto companies can’t open bank accounts with institutions like NatWest and Santander. A NatWest spokesperson said:
The bank does not currently offer banking facilities to businesses [that] buy or sell cryptocurrencies. This is a rapidly evolving space in the UK and we keep our stance under constant review.
A Santander spokesperson told CoinDesk decisions to onboard new bank customers are made based on each one’s specific details and on a case-by-case basis.
Banks are restricting crypto payments
Last year, Santander set a limit of GBP 1,000 on transfers to crypto exchanges. Starling Bank, which is based in the UK, stopped supporting crypto buying and selling by bank transfer or debit card. It has never offered crypto businesses direct banking services.
This is not a new trend in the UK – banks in the country began pulling away from the crypto industry a few years ago. According to NatWest CEO Alison Rose, the bank blocked retail and wealth customers from converting fiat to crypto because of how volatile the crypto market is. She also cited fraud as a reason.
NatWest imposed a limit on customer transfers to crypto exchanges to GBP 1,000 a day and GBP 5,000 a month, equivalent to roughly $1,200 and $6,150. This decision was made in order to protect consumers from crypto-related crimes.
Banks such as HSBC and Nationwide also announced limitations on crypto purchases and interactions with exchanges to protect their consumers from risks.
