The UK's stated goal of becoming a global cryptocurrency hub faces practical obstacles from major banks' restrictions on crypto transactions. More than 10,000 complaints about banking limitations on cryptocurrency purchases were submitted over a 90-day period between May and August, according to advocacy group Stand With Crypto.
The complaints covered customers across all 650 UK parliamentary constituencies. Lloyds Banking Group received the most complaints with 2,297, equivalent to 23% of the total. Barclays followed with 1,569 complaints, while NatWest Group received 1,278. The figures were collected through a voluntary online tool and are not adjusted for each bank's market share.
The findings highlight a disconnect between banks' public policies and customer experience. Lloyds has no published policy restricting crypto-related transfers according to a review of bank websites as of August 28. However, some banks do state explicit limits. Barclays restricts crypto transfers to 2,500 pounds per transaction and 10,000 pounds over 30 days. NatWest and Santander also state transaction and monthly limits. Chase, Starling, TSB, Metro Bank and Virgin Money prohibit crypto transactions altogether.
The UK government first announced support for the cryptocurrency industry in 2023 under the Conservative administration. This position was reiterated less than a year ago by the economic secretary to the Treasury under the Labour administration. The Financial Conduct Authority is preparing a comprehensive regulatory regime intended to attract crypto businesses.
Research by the UK Cryptoasset Business Council indicated that 40% of attempted transfers to FCA-registered crypto exchanges were blocked or delayed during the preceding 12 months. Most exchanges reported that customer friction had increased, with 70% saying banking conditions were more hostile than a year earlier.
Banks have legitimate concerns about fraud, scams and money laundering associated with crypto transfers. However, Stand With Crypto argues that blanket restrictions go beyond proportionate risk management and conflict with expectations that financial crime controls should assess individual customers and transactions rather than restrict entire industries.
