Stand With Crypto UK launched a campaign on Wednesday urging banks to lift crypto exchange transfer restrictions. The advocacy group encouraged its more than 286,000 registered UK advocates to file complaints over blanket restrictions on transfers to exchanges already registered under the UK's Financial Conduct Authority (FCA). The campaign cited the UK Cryptoassets Business Council's 'Locked Out' report released earlier this year, which found that around 40% of attempted transactions from UK banks to crypto exchanges are blocked or delayed, and 80% of exchanges report increased customer friction over the past year. The group argues the restrictions contradict the country's ambitions to become a global digital asset hub.
UK Cryptoassets Business Council Report Reveals Transaction Blocking Data
The UK Cryptoassets Business Council's 'Locked Out' report released earlier this year documented widespread banking restrictions affecting crypto transactions. The study found that around 40% of attempted transactions from UK banks to crypto exchanges are either blocked or delayed. Additionally, 80% of exchanges reported a noticeable increase in customer friction over the past year. One exchange reported nearly £1 billion (~$1.3 billion) in cancelled transactions in just the span of a year due to bank rejections, according to the report.
"People across the UK are being blocked from accessing a legal asset class because banks have chosen to impose blanket restrictions on an entire sector," Stand With Crypto UK Director Adriana Ennab said in a statement. "Consumers should be treated as individuals, not subjected to one-size-fits-all policies."
UK Regulators Propose Crypto Investment Rules and Access Frameworks
Last week, the House of Lords Financial Services Regulations Committee warned that Britain risks falling behind the U.S. and the European Union on stablecoin regulations. The FCA recently proposed allowing investment funds to allocate up to 10% of their assets to crypto exchange-traded notes. Earlier this year, UK retail investors regained tax-advantaged access to crypto exchange-traded notes through the Innovative Finance ISA framework.
Industry Leaders Cite Banking Restrictions as Adoption Barrier
"The Government has set out a vision to make the UK a global hub for digital assets and Web3," Katie Harries, Coinbase's head of policy for Europe, said in a statement. "But the banks are choking off the crucial on-ramp from fiat money into crypto."
FAQ
What did Stand With Crypto UK do on Wednesday?
Stand With Crypto UK launched a campaign on Wednesday urging banks to lift restrictions on transfers to crypto exchanges. The group encouraged its more than 286,000 registered UK advocates to file complaints with their banks over blanket restrictions on transfers to exchanges already registered under the UK's Financial Conduct Authority.
What did the UK Cryptoassets Business Council report find about crypto transaction blocking?
The UK Cryptoassets Business Council's 'Locked Out' report released earlier this year found that around 40% of attempted transactions from UK banks to crypto exchanges are either blocked or delayed, and 80% of exchanges report a noticeable increase in customer friction over the past year. One exchange reported nearly £1 billion in cancelled transactions in a year due to bank rejections.
