The UK Cryptoasset Business Council (UKCBC) has revealed in a survey that fund transfers between British bank accounts and exchange platforms are regularly blocked, refused, or delayed.
The survey is based on responses from ten of the UK’s largest centralised platforms, which serve millions of users and process hundreds of billions of pounds in transactions.
The findings show that 80% of exchange platforms have experienced an increase in blocked bank transfers, resulting in delays for 40% of transactions. In 2025, banks declined nearly 1.4 billion transactions, mainly involving open banking transfers and card payments. Meanwhile, 70% of institutions believe the banking environment has become more hostile compared with a year ago.
UKCBC group issues a warning
The report states that “the debanking of the digital asset economy in the UK is a barrier to its growth” and that “almost all major UK banks impose blanket limits on transactions or complete blocks on cryptoasset trading.” This trend continues to worsen, with new restrictions being implemented.
Simon Jennings, Executive Director of the UKCBC, acknowledges the potential for fraudulent activity but argues that the situation has gone too far. He criticises many banks for relying on compliance rules to restrict the sector rather than managing risks in a more targeted way.
According to the report, banks provide little or no explanation for these measures, leaving customers and businesses feeling powerless.
What is UKCBC calling for?
The association is urging the government and the Financial Conduct Authority (FCA) to clarify that blanket bans do not apply. It is also calling on banks to adopt more specific, risk-based criteria and to ease restrictions on FCA-registered platforms.
Jennings warns that the UK risks losing its share of the global digital asset market if these practices continue. However, banks appear unwilling to engage in dialogue with the sector or share data on fraud risks.
While regulators are gradually refining the framework, the FCA has made progress in cryptocurrency regulation and is showing greater openness. After an initially restrictive approach, the regulator began consulting industry stakeholders.
In January, authorities launched consultations to define regulations scheduled to come into force in October 2027. Meanwhile, in late 2025, His Majesty’s Treasury (HMT) adopted legislation expanding the scope of financial regulation to include the crypto industry.
Banks remain unconvinced
Despite regulatory developments, banks remain cautious. HSBC, Barclays, and NatWest have introduced deposit limits on cryptocurrency-related accounts, while Chase UK, Metro Bank, TSB, and Starling Bank have banned all related transfers.
Starling Bank justifies its position by arguing that it is acting in its customers’ best interests given the significant risks associated with cryptocurrencies.
A spokesperson for UK Finance, which represents more than 300 banks and financial service providers, told CoinDesk that the organisation supports the FCA’s work. However, they added that banks “have a duty to protect their customers and make risk-based decisions about potential fraud, scams and economic crime.” HMT, the FCA, and most cryptocurrency exchanges declined to comment.
The UK cryptocurrency market is facing disruption
Crypto platforms have complained that banks are restricting their customers’ ability to transfer funds to crypto-related accounts. Despite the existing regulatory framework, banks maintain that they are acting in their customers’ best interests by protecting them from the risks associated with cryptocurrencies.
