UK banks block or delay 40% of crypto exchange transfers — survey
A survey by the United Kingdom Cryptoasset Business Council (UKCBC) reports that transfers between UK bank accounts and cryptocurrency exchanges are routinely blocked, delayed, or declined, including transactions to regulated platforms.
The study, titled “Locked Out: Debanking the UK’s Digital Asset Economy,” compiles responses from 10 of the country’s largest centralized exchanges, which serve millions of UK users and have handled transactions totaling hundreds of billions of pounds. The UKCBC said the findings quantify the impact of current banking practices on the sector and warned that widespread restrictions are constraining growth and challenging the UK’s goal to become a leading center for digital assets.
According to the survey, eight in 10 exchanges observed a clear increase over the past 12 months in customers facing blocked or limited transfers, with none reporting a decline.
How difficult is it to transfer funds?
Based on participating exchanges’ data, UKCBC estimates that 40% of transactions to crypto exchanges are either blocked or delayed by the banks involved.
Cryptoasset Business Council (UKCBC) report. Source: UKCBC
Simon Jennings, executive director of the UKCBC, said the industry recognizes fraud as a legitimate concern and is seeking solutions, but expressed concern that some banks may be using compliance as a pretext to inhibit sector growth.
One major UK‑founded exchange reported close to 1 billion pounds ($1.4 billion) in declined UK transactions over the past year due to bank rejections of card payments and open‑banking transfers. The trend spans a wide range of providers: most large high‑street banks now apply strict limits or outright blocks on bank transfers and card payments to exchanges, while several challenger institutions permit payments but with tight caps or 30‑day limits.
Blanket policies and transparency issues
The UKCBC said nearly all major UK banks and payment firms enforce blanket transaction limits or complete blocks on crypto‑asset exchanges, often without distinguishing Financial Conduct Authority (FCA)‑registered UK businesses from higher‑risk platforms. Feedback from exchanges cited inconsistent restrictions “even against FCA‑registered firms,” driven by broad policies rather than evidence‑based risk assessments.
Jennings noted that payment blocks or limits appear to be applied universally and that FCA registration does not currently prevent such measures. The report also highlights a lack of transparency, with 100% of surveyed exchanges stating that banks provide no clear rationale for payment blocks or account restrictions, leaving firms and customers without adequate explanations.
One exchange reported that 60% of its customers expressed frustration with the resulting friction, while another described bank‑imposed limits and bans as “the single biggest problem” for scaling or launching new crypto products in the UK.
UKCBC recommendations
The report concludes that anti‑competitive debanking practices are undermining domestic innovation and pushing competition overseas.
UKCBC recommends that the government and the FCA clarify that blanket bans are unacceptable, require banks to implement more granular, risk‑based approaches that differentiate between exchanges, and remove unnecessary frictions for FCA‑registered firms.
Jennings called for “constructive dialogue” as a first step but said banks have not meaningfully engaged or shared data on fraud levels. He added that if the UK intends to lead globally in this area, current practices need to change.
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