British banks are increasingly restricting customer access to cryptocurrency platforms, even as the country advances toward a clearer regulatory framework for digital assets. A recent industry survey indicates that most major banks in the United Kingdom continue to block or limit transfers to crypto exchanges, including those officially registered with the Financial Conduct Authority. According to responses collected from leading exchanges operating in the country, customers faced significantly more transfer disruptions throughout 2025, with many transactions either delayed or outright rejected. This trend has emerged despite the FCA expanding its register of compliant crypto firms, which now includes dozens of platforms that meet anti money laundering standards. Industry participants argue that these banking restrictions undermine the intent of regulatory progress and create barriers for retail and institutional users seeking regulated access to digital asset markets.
Data from the survey shows that the majority of exchanges observed a marked increase in banking related friction over the past year. Roughly four in five platforms reported that more customers encountered transfer blocks in 2025, while a large share described the overall banking environment as increasingly hostile. Some exchanges estimated that a substantial volume of attempted transactions failed due to bank side controls, resulting in lost business and reduced market activity. Several firms indicated that the difficulty of operating within the UK banking system has forced them to shift focus toward other jurisdictions with more accommodating financial infrastructure. Industry representatives warn that continued debanking could limit innovation and weaken the country’s ambitions to position itself as a global hub for digital finance.
Major retail banks including HSBC, Barclays and NatWest maintain caps on crypto related transfers, while several others enforce complete bans, citing concerns around fraud and consumer protection. Banks argue that high risk profiles associated with digital assets justify precautionary measures, even as regulators move toward formal oversight. Meanwhile, the UK Treasury and the FCA are consulting on new rules expected to take effect later in the decade, extending traditional financial regulations to crypto activities. Industry groups contend that without alignment between regulation and banking access, the practical benefits of compliance remain limited for businesses and consumers alike.
