Bitcoin Policy UK has submitted evidence to Parliament revealing that British banks continue to impose blanket restrictions on legitimate bitcoin transactions, creating ongoing operational challenges for crypto firms and their employees three years after concerns were first raised.
The policy group's submission to the Crypto and Digital Assets All-Party Parliamentary Group's inquiry into banking access shows approximately 40% of bank-to-exchange transfers in the UK face blocks or delays. This persistent issue affects crypto companies' ability to operate effectively and hire in the UK market.
Banking Access Remains Critical Issue for Crypto Employers
The problems extend beyond individual transactions. A January 2025 joint survey by Startup Coalition, the UK Cryptoasset Business Council, and Global Digital Finance found that half of UK fintech and crypto firms surveyed had been refused bank accounts or had existing accounts closed. Only 14% successfully opened and maintained accounts with the country's nine largest banks.
Major UK banks including Virgin Money, Metro Bank, Starling Bank, TSB and Chase UK block crypto-related transfers and card payments entirely. Barclays and HSBC impose transaction caps at £2,500 ($3,400). According to Bitcoin Policy UK, 80% of exchanges reported increased restrictions over the past year, with none seeing improvements.
Regulatory Clarity Needed for Industry Growth
The core issue stems from UK policy treating all digital assets uniformly, applying regulations written for unbacked tokens and stablecoins to bitcoin. While the British government stated in 2023 that banks should assess cases individually rather than implementing sector-wide restrictions, practice has not aligned with policy guidance.
Bitcoin Policy UK has requested four specific changes: regulatory guidance confirming bitcoin activity through FCA-registered exchanges should not face blanket restrictions; mandatory disclosure of specific reasons for rejections with appeals processes; confirmation that FCA registration can serve as a risk assessment basis; and regular public reporting on restriction levels.
Impact on UK's Crypto Workforce Ambitions
These banking restrictions create uncertainty for blockchain professionals considering UK-based opportunities and for companies evaluating UK expansion. The situation contrasts with City Minister Lucy Rigby's December statement that Britain can compete with the United States as an international cryptoasset hub. As the UK moves toward full implementation of its cryptoasset regime by 2027, resolving banking access issues will prove critical for attracting and retaining crypto talent and employers.
