Despite the UK’s system-wide crypto regulations, most of the country’s banks still block customers’ access to registered crypto exchanges.
The Financial Conduct Authority’s list of crypto-asset companies that certify that they meet national anti-money laundering and terrorist financing regulations currently includes 59 companies, including exchanges such as Coinbase (COIN), Kraken and Gemini (GEMI).
Still, customers who want to invest on these platforms are likely to be blocked by their banks. Lobby group UK Cryptoassets Business Council revealed in a report published on Monday that seven of the top 10 exchanges operating in the country have perceived increased hostility from the national bank over the past year. The remaining three remain unchanged.
80% of exchanges reported that more customers will experience bank transfer blocks or restrictions in 2025, and 70% said the banking environment will be even more challenging than 12 months ago. The study found that 40% of transactions are blocked or delayed.
“Debanking of the UK digital asset economy is a major impediment to its growth,” the group said in its report. “…nearly all of the UK’s major banks and payment services companies have now imposed blanket trading restrictions or outright blocks on crypto exchanges. This trend is steadily worsening and new restrictions are being introduced…”
The FCA, which had previously been very restrictive towards crypto companies, has taken a more open stance and last week began a consultation on new rules that will come into force by October 2027. The path to formal regulation of cryptocurrencies in the UK has become clearer with Treasury legislation extending existing financial rules to apply to the industry at the end of 2025.
One exchange said: “If we were registered with the FCA, it wouldn’t be this difficult for UK companies.” “As a result, we prioritized other markets.”
One cryptocurrency exchange announced that bank rejections resulted in nearly $1.4 billion in transaction rejections in 2025.
Banks don’t budge. Among the country’s largest banks, HSBC (HSBA), Barclays (BARC), and NatWest (NWG) all have limits on the amount of money customers can transfer to their crypto exchange accounts. Many other banks, including Chase UK, Metro Bank, TSB and Starling Bank, have completely blocked all transfers, justifying their stance that this is in the interest of their customers given the high risks posed by digital assets.
“Starling does not allow customers to buy or sell cryptocurrencies with debit cards, bank transfers in GBP, or bank transfers in other currencies,” a spokesperson told CoinDesk. “We made this decision to protect our customers.”
Asked if it agreed with crypto exchanges’ recognition of the hostile environment, the bank said only: “We keep our policies under constant review and note that the regulation of crypto companies is currently under review by the FCA.”
A spokesperson for UK Finance, which represents more than 300 banks and financial services providers, told CoinDesk that the organization supports the FCA’s efforts to regulate cryptocurrencies and supports safekeeping of stablecoins and cryptocurrencies under robust rules.
“For us, there is no resistance to cryptocurrencies,” the spokesperson said. However, individual banks “have a duty to protect their customers and to make risk-based decisions regarding the potential threat of fraud, fraud and economic crime.”
Several crypto exchanges contacted by CoinDesk declined to comment, with one saying the warning reflected regulatory and legal reasons.
The FCA and Treasury declined to comment.
