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

We all know about cryptocurrencies like Bitcoin and Ethereum. They’re exciting, digital, and undeniably the future of money. But here’s the catch: not everyone’s on board yet, especially in the UK banking sector.

While you might expect banks to leap enthusiastically at such innovative technology, several UK banks have put up barriers instead. Rather than embracing crypto, they’ve made buying, selling, or trading these digital currencies trickier.

Which UK banks are restricting crypto transactions? Let’s try to understand why they’re being so cautious.

Which UK banks limit crypto transactions?

Several UK banks have decided to restrict cryptocurrency transactions, including:

• Barclays
• Lloyds
• HSBC
• NatWest
• RBS
• Virgin Money

It’s important to remember that this lineup isn’t set in stone. The stance of these banks towards cryptocurrencies can change as new regulations come into play or as the market evolves. So, if you’re into crypto, it’s a good idea to stay updated on which banks are crypto-friendly and which are not, as this can impact how you manage and access your digital assets.

Why do some banks not accept crypto?

Let’s discuss in more detail why these banks are currently hesitant to join the crypto revolution.

Fraud and Money Laundering

Cryptocurrencies’ fast rise and tech appeal make them a prime target for scams and money laundering. The FCA has repeatedly warned about the dangers of crypto-related fraud. Since crypto transactions can happen across borders and are digital, they allow money to be moved around the globe quickly and quietly, making it tough for the good guys to keep up and clamp down on shady dealings. But who knows? Cryptocurrency regulations might improve over time, and banks might want a piece of the action.

Regulatory Uncertainty

That leads to uncertainty about crypto regulations. One of the big hang-ups for banks regarding cryptocurrencies is how unclear the regulatory environment is.

Thankfully The FCA (Financial Conduct Authority) is on the case, working hard to put together a solid set of rules for the crypto world. But as long as these rules aren’t finalised, banks are playing it safe and keeping a little distance from the crypto market. This grey area isn’t just a compliance headache; it also makes it tricky for banks to figure out long-term plans for including crypto in their services.

Volatility

We all know about crypto and its wild price swings. Cryptocurrency values can shoot up or plummet quickly, and this kind of volatility can be risky, not just for the banks but also for customers who might not fully grasp how quickly things can change. Banks worry that diving too deep into such choppy waters could shake their stability and customers’ trust.

What Can You Do If Your Bank Limits Crypto Transactions?

Finding out your bank has placed limits on cryptocurrency transactions can be a setback, but you’ve got options.

First, consider shopping around for a new bank. There are banks out there that are more welcoming to crypto-related businesses. Look for those known for being crypto-friendly, and you might find a better fit for your digital currency needs.

Another good move is to check out Electronic Money Institutions (EMIs). EMIs are often more open to crypto and can offer services that traditional banks might not. They could be a great alternative if you’re frustrated with facing restrictions.

You could also go directly to a cryptocurrency exchange that doesn’t need a bank account to operate. These platforms let you buy, sell, and manage your cryptocurrencies independently, so you won’t have to worry about bank restrictions.

What are some crypto-friendly banks?

Find a crypto-friendly bank for seamless transactions and fewer hassles when dealing with cryptocurrencies. Here’s a deeper look at some banks known for their positive stance towards crypto.

Revolut

Revolut has expanded its services to include cryptocurrency trading within its app. You can buy, sell, and hold cryptocurrencies like Bitcoin, Ethereum, Litecoin, and others.

Monzo

Monzo doesn’t directly offer cryptocurrency services but is known for not blocking transactions to and from cryptocurrency exchanges. This makes it easier for crypto traders to move money to exchanges like Coinbase or Binance.

Fidor Bank

Fidor Bank is a German bank that has been very open to cryptocurrencies. They offer a ‘Crypto Bank Account’ that integrates traditional banking features with support for cryptocurrency trading. Their services are geared towards crypto traders and businesses, offering solutions for managing fiat and crypto funds.

Bankera

Bankera is a part of SpectroCoin, which provides a range of cryptocurrency solutions, including exchange services and a wallet. Bankera aims to bridge the gap between traditional banking and crypto. It offers business accounts for crypto companies, making it easier to manage crypto and fiat under one roof.

Bunq

Bunq, a Dutch online bank, allows users to send money to cryptocurrency exchanges. Similar to Monzo, while not directly offering crypto services, Bunq provides a hassle-free approach to interacting with crypto platforms.

Crypto Debanked FAQs

What can I do if my bank limits crypto transactions?

If your bank limits crypto transactions, you can switch to a more crypto-friendly bank, use an Electronic Money Institution (EMI) that supports crypto transactions or trade directly through a cryptocurrency exchange that does not require a bank account.

What is an Electronic Money Institution, and how can it help with crypto transactions?

An Electronic Money Institution (EMI) is a financial entity authorised to issue electronic money and provide related financial services. EMIs are often more receptive to cryptocurrency businesses and can offer services such as online accounts and transactions that facilitate crypto trading without traditional bank limitations.

How do I trade cryptocurrencies without a bank account?

To trade cryptocurrencies without a bank account, you can use cryptocurrency exchanges to deposit, trade, and withdraw funds directly in cryptocurrencies. These platforms typically require just an email address to start and do not need a link to a conventional bank account.

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