UK Banks Impose Restrictions On Crypto Payments, Limiting Business Opportunities
- UK crypto companies are experiencing difficulty obtaining banking services due to major banks imposing bans or restrictions on businesses that buy or sell cryptocurrencies.
- UK banks have been limiting crypto payments in recent years, with NatWest and Santander being particularly restrictive.
- Lisa Cameron, the Chair of the Crypto and Digital Assets group and a member of Parliament has raised concerns in Parliament, urging banks to review their policies.
UK crypto businesses are facing a significant challenge in obtaining banking services due to limited interaction with several UK banks, as per CoinDesk.
This has resulted in a crypto banking problem that has persisted since at least 2021. Major UK banks, including NatWest and Santander, have imposed bans or restrictions on crypto businesses, making it difficult for them to access essential banking facilities. It is worth noting that banks continue to review their stance on this issue, and there is concern that other banks and Payment Services Providers (PSP) may follow suit.
In addition to the limitations on banking services, UK banks have been restricting crypto payments in recent years. For instance, NatWest began limiting customer payments to crypto exchanges in March to protect consumers from potential risks. Many other banks, including Nationwide and HSBC, have also announced restrictions on crypto purchases around the same time. Spanish bank Santander, which has branches in the UK, has limited transactions to crypto exchanges to 1,000 British pounds per transaction, while UK-based Starling Bank no longer supports the buying and selling of cryptocurrencies.
The impact of these limitations has been significant, with crypto businesses unable to open bank accounts and customers complaining about UK banks banning transfers to crypto exchanges. Lisa Cameron, the Chair of the Crypto and Digital Assets group and a member of Parliament has raised these concerns in Parliament, urging banks to review their policies. The UK crypto banking problem is a complex issue that requires further attention and dialogue between regulators, banks, and crypto businesses.
In summary, UK crypto businesses are grappling with a significant banking challenge, with several banks limiting their interaction with the sector. This, coupled with the restrictions on crypto payments, has led to a complex issue that requires urgent attention. While banks continue to review their stance on this issue, finding a lasting solution that benefits both crypto businesses and consumers is essential.
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