UK banks block or delay 40% of crypto transfers
A survey conducted by the UK Cryptoassets Business Council (UKCBC) among ten UK cryptocurrency exchanges found that 40% of transactions from bank accounts to crypto exchanges are either blocked or delayed by banks.
The survey, titled “Blocked: Debanking Support for the UK’s Digital Assets Economy,” is based on responses from the UK’s 10 largest centralized exchanges, which collectively serve millions of British consumers and have processed transactions worth hundreds of billions of pounds.
The goal of the study was to replace anecdotal evidence with concrete data on how current banking practices affect the sector. UKCBC argues that widespread restrictions pose a serious barrier to growth and are already undermining the UK’s ambition to become a leading global hub for digital assets.
As reported by Cointelegraph, eight out of ten exchanges said they had seen a noticeable increase over the past 12 months in the number of customers facing blocked or restricted transfers, while none reported a decline.
One of the UK’s leading crypto platforms recorded around £1 billion in rejected transactions over the past year, linked to refused payments and transfers via the Open Banking system. Banks typically do not provide clear explanations for payment blocks or account restrictions.
Blanket blocks and lack of transparency
UKCBC highlights that nearly all major UK banks and payment companies are currently imposing broad transaction restrictions or outright blocks on cryptocurrency exchanges, often without distinguishing between UK firms registered with the Financial Conduct Authority (FCA) and higher-risk platforms.
“We recognize that fraud is a legitimate concern and we actively want to work on solutions. However, there is widespread concern in the industry that banks are using regulatory compliance as a tool to constrain the sector’s growth,” UKCBC CEO Simon Jennings told Cointelegraph.
This trend affects a wide range of providers: most major banks now enforce strict limits or blocks on both bank transfers and card payments to exchanges, while a few competitors allow payments but with tight caps or 30-day limits.
One exchange cited in the report said that 60% of its customers had expressed dissatisfaction with the resulting inconvenience, while another described bank-imposed restrictions and bans as “the biggest challenge” to developing or launching new crypto products in the UK.
As we wrote, Ripple expands UK operations after receiving FCA EMI approval
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