Bitcoin Policy UK has criticized British banks for continuing to apply blanket restrictions to lawful bitcoin activity. In an announcement, the organization revealed it submitted evidence to the Crypto and Digital Assets All-Party Parliamentary Group's (APPG) inquiry into banking access, showing that no improvements have been made over the past three years.
The policy group stated that current UK policy lumps crypto together, causing bitcoin to be caught by rules intended for unbacked tokens and issuer-dependent stablecoins. Although the British government has stated since 2023 that banks should assess risks on a case-by-case basis rather than restricting activity by sector, Bitcoin Policy UK noted that practical implementation has lagged, creating a widening gap as the UK approaches the full implementation of its cryptoasset regime in 2027.
According to the organization's submission, roughly 40% of bank-to-exchange transfers in the UK are currently blocked or delayed. Bitcoin Policy UK called on British banks to provide specific reasons for rejecting bitcoin-related activity and to establish an appeals route.
Previous industry data highlights the scale of banking hurdles for the sector. A joint survey published in January 2025 by the Startup Coalition, the UK Cryptoasset Business Council, and Global Digital Finance found that half of the UK fintech and crypto firms surveyed had been refused a bank account or had one closed, with only 14% successfully opening and maintaining an account with one of the country's nine largest banks.
Bitcoin Policy UK detailed that institutions including Virgin Money, Metro Bank, Starling Bank, TSB, and Chase UK block transfers and card payments outright, while Barclays and HSBC cap transfers at £2,500 ($3,400) per transaction. Furthermore, 80% of surveyed exchanges reported that restrictions had increased over the previous year, and an August 2025 IG Group survey found that 40% of active crypto investors had experienced a blocked or delayed payment by their bank.
The submission outlines four key requests:
- A regulatory statement clarifying that bitcoin activity through a Financial Conduct Authority (FCA)-registered exchange should not face blanket restrictions.
- A requirement for banks to provide specific reasons for rejections alongside an appeals route.
- Confirmation that FCA registration can serve as a risk basis, similar to policies in Hong Kong.
- A published periodic measure tracking restriction levels.
Despite these ongoing banking friction points, City Minister Lucy Rigby stated in December that Britain can successfully compete with the United States to become an international hub for cryptoassets.
