UK crypto group launches campaign against bank transfer curbs

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UK crypto campaign vs. bank curbs

Highlights

Stand With Crypto mobilizes 286,000 members against UK banks blocking or limiting crypto exchange transfers, citing 40% of transactions restricted and £1 billion in declined transfers at one exchange.
UK regulators are revisiting proposed stablecoin reserve and holding limits in May and June, as concerns escalate over impacts on financial stability, bank funding, and sector growth.
The Financial Conduct Authority on June 8 proposes allowing certain retail-focused funds to invest up to 10% in crypto exchange-traded products, signaling regulatory openness toward greater digital asset integration.

Campaign targets bank restrictions

As reported by Stand With Crypto, the group is urging its 286,000 members to challenge banks that block or limit transfers to cryptocurrency exchanges through a website tool that generates complaint letters.

The campaign cites a UK Cryptoassets Business Council report that found 40% of crypto transactions are blocked or restricted by UK banks. The group says many of those measures affect transfers involving exchanges registered with the Financial Conduct Authority and do not reflect individual customer risk profiles.

According to the report, one exchange records nearly 1 billion British pounds in declined transactions over a one-year period because of bank-side rejections, while 80% of surveyed platforms report an increase in blocked or restricted transfers. Stand With Crypto says responses from banks will help determine the campaign's next steps.

Mark Fairless, chief executive of UK clearing bank ClearBank, tells Cointelegraph that banks should use a risk-based approach to crypto-related payments instead of broad restrictions across the sector. He says targeted and proportionate interventions are preferable because wider blocks risk weakening competition and the ability of regulated firms to operate effectively in the UK.

Stablecoin rules shape wider market outlook

The campaign is unfolding as UK policymakers continue to build a national framework for stablecoins and broader digital asset activity. At the beginning of May, a House of Lords committee examines proposed stablecoin rules, with lawmakers questioning industry executives on bank-run risks, anti-money laundering controls and the potential effect on traditional banking.

Later in May, the Bank of England says it is reconsidering proposed caps on stablecoin holdings and reserve requirements as it reviews its framework for pound-denominated stablecoins. Regulators are seeking to support the growth of a domestic stablecoin market while limiting risks to bank funding and financial stability, with non-dollar stablecoins still representing only a small share of the global market.

In June, a House of Lords committee says some proposed reserve and holding requirements could limit the viability of pound-denominated tokens and urges regulators to avoid measures that could curb sector growth. Beyond stablecoins, the central bank in May proposes longer operating hours for the country's settlement infrastructure to support tokenized markets, while the Financial Conduct Authority on June 8 proposes allowing certain retail-focused investment funds to allocate up to 10% of their portfolios to crypto exchange-traded products.

Our earlier article on AI Financial’s WLFI token exposure explained how the Nasdaq-listed firm said it had substantially eased its going-concern risks after steep losses tied to its crypto holdings. We noted that despite improved liquidity, the company remained under pressure from a sub-$1 share price that could trigger Nasdaq delisting, while the value of its WLFI position stayed sharply below the level at which it was acquired.

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