May 23, 2023

Crypto de-banked: Who Are The UK Banks That Limit Crypto Transactions?

Last Updated: October 18, 2023

Bitcoins and a gavel

In recent years, there has been a growing interest in cryptocurrencies, such as Bitcoin and Ethereum.

However, the UK banking sector has been slow to embrace this new technology.

In fact, a number of UK banks have done quite the opposite and put in place obstacles for the adoption of crypto. They have done this by placing restrictions on cryptocurrency transactions.

Why on earth would UK banks limit crypto transactions?

There are a number of reasons why UK banks have limited cryptocurrency transactions.

Some banks are concerned about the risks associated with cryptocurrency, such as the potential for fraud and money laundering.

Others are concerned about the regulatory uncertainty surrounding cryptocurrency.

Which UK banks limit crypto transactions?

A number of UK banks have placed restrictions on cryptocurrency transactions.

These banks include:

• Barclays,
• Lloyds,
• HSBC,
• NatWest,
• RBS; and
• Virgin Money

This list might change on a regular basis.

 

Fraud and Money Laundering

Cryptocurrency is a relatively new technology and it is still not fully regulated.
This has made it a target for fraud and money laundering.

In fact, the Financial Conduct Authority (FCA), the UK’s financial regulator, has warned about the risks of cryptocurrency fraud.

Regulatory Uncertainty

The regulatory environment for cryptocurrency is still evolving.

This uncertainty has made some banks reluctant to offer cryptocurrency services. The FCA has said that it is working to develop a regulatory framework for cryptocurrency, but it is not clear when this framework will be finalized.

What can you do if your bank limits crypto transactions?

If your bank limits cryptocurrency transactions, there are a number of things you can do.

You can try to open an account with a different bank that is more crypto-friendly. Electronic Money Institutions (“EMIs”) are often more positive to crypto related business.

You can also use a cryptocurrency exchange that does not require a bank account.

Conclusion

The UK banking sector is still evolving when it comes to cryptocurrency.

It is likely that we will see more banks start to offer cryptocurrency services in the future.

However, for now, it is important to be aware of the restrictions that some banks have placed on cryptocurrency transactions.

Andy Wood

Andy has a breadth of experience as a Barrister and as a Chartered Tax Advisor, which means he comes into the crypto space with expertise he can't wait to share.

Learn more

Follow Andy:

Get started with Crypto & sign up to our channel

"*" indicates required fields

Focused,Crypto,Trader,Analyst,Wearing,Eyeglasses,Working,Looking,At,Computer

Become a Degen!

Want to join the community? View our range of packages with exclusive perks!

Our Packages
  • logo
  • 1024px The Telegraph logo.svg
  • skysport
  • The Guardian 2018
  • 2560px BBC logo white.svg 1

Don’t get rekt

It’s not complicated. The best way to avoid bagholding is by staying informed. The best way of staying informed is by listening to the expert.

Andy has a wealth of experience and knowledge designed to help you navigate the crypto tax world, whether you’re in a bull run, sitting on uncomfortably large profits, or planning for the next halving.

1

Exclusive access

Exclusive access to one of the brightest minds in Crypto

2

Expert advice

Expert advice on preserving wealth, estate planning, wills, and so much more

3

International network

Connections to an international network of professional tax advisors

Join the community

Assured Ape

£9.99 / month

E Book

E Book - real time updates

Quarterly update webinar

Annual conference

Monthly livestream

30 min appointment crypto accountant

4 hours per annum tax counsel

Access to exclusive tax planning guide

Access to exclusive estate planning guide

Discord / Telegram

Degenerate

£19.99 / month

E Book

E Book - real time updates

Quarterly update webinar

Annual conference

Monthly livestream

30 min appointment crypto accountant

4 hours per annum tax counsel

Access to exclusive tax planning guide

Access to exclusive estate planning guide

Discord / Telegram

Diamond Hands

£89.99 / month

E Book

E Book - real time updates

Quarterly update webinar

Annual conference

Monthly livestream

30 min appointment crypto accountant

4 hours per annum tax counsel

Access to exclusive tax planning guide

Access to exclusive estate planning guide

Discord / Telegram

Get in touch

Got a question or query about our community? Reach out now and we will get back to you soon.

"*" indicates required fields

phone