The UK Cryptoasset Business Council recently reported that UK banks frequently block, delay or refuse transfers between domestic bank accounts and crypto exchanges, even when customers use regulated platforms, because banks apply broad compliance restrictions that impede sector growth. The finding comes from a survey of ten major centralized exchanges that serve millions of UK users and process hundreds of billions of pounds (hundreds of billions of dollars) in transactions.
According to the survey, eight in ten exchanges saw an increase in blocked or limited transfers over the past year, and the council estimates about 40% of transactions to exchanges are blocked or delayed. One leading UK‑founded exchange reported nearly £1 billion in declined transactions last year (about $1.4 billion).
Simon Jennings, executive director of UKCBC, said, “We acknowledge that fraud is a legitimate concern and we actively want to work towards a solution. However, there is a widespread concern within the industry that banks are using compliance posture as a proxy to hinder growth of the sector.”
Exchanges told the council that banks apply blanket limits or outright bans, often without explaining decisions, and that FCA registration does not prevent these restrictions. The report urges the government and the Financial Conduct Authority to require more granular, risk‑based bank frameworks and to reduce unnecessary frictions for registered firms.
