UK banks block or delay around 40% of payments to crypto platforms, exchange survey finds

Major UK retail and commercial banks are currently obstructing approximately 40% of all transactions destined for digital asset exchanges, according to a new report from the UK Cryptoasset Business Council.

The survey covered ten large centralized exchanges operating in the UK, including Coinbase, Kraken, OKX, Gemini, and Bitpanda. One exchange reported close to £1 billion ($1.2 billion) in declined transactions over the past year due to bank-side rejections in the UK alone, based on card payments and bank transfers visible to the platform.

According to the report, 80% of surveyed exchanges reported a sharp increase in customer payment issues over the past 12 months. 70% described the UK banking environment as becoming “more hostile” over the past year, with the nation scoring 7.9 out of 10 for difficulty in accessing banking compared to other global markets.

“This has compounded growing the UK market and continues to be the single biggest problem with growing or launching new crypto products in the UK,” one large exchange said in the report. “As a result, we have prioritised other markets.”

The restrictions are broad and opaque, according to the findings. All surveyed firms said banks provide no clear explanations when payments are blocked, including for FCA-registered exchanges, and 60% reported disruption across both bank transfers and card payments.

Regulatory clash and proposed remedies

The report names several high-street institutions as “particularly challenging,” with Virgin Money, Metro Bank, Starling Bank, TSB, and Chase UK currently maintaining outright blocks on both bank transfers and debit card payments to exchanges.

Traditional incumbents, including Barclays and HSBC UK, have implemented restrictive caps, limiting transactions to £2,500 ($3,180) per transfer and £10,000 ($12,700) over a 30-day rolling period. These blanket measures persist despite the Financial Services and Markets Act 2000 (FSMA) framework currently under development.

This blanket approach, applied even to firms registered with the Financial Conduct Authority, raises specific legal concerns, according to the UK Cryptoasset Business Council. The council said that current debanking practices could risk breaching three established UK regulations: Regulation 105 of the Payment Services Regulations 2017, which requires case-by-case assessments for payment restrictions; the FCA’s Consumer Duty mandate to avoid foreseeable harm to customers; and the Competition Act 1998, which guards against anti-competitive practices that distort markets.

In response, the council’s recommendations seek to enforce existing obligations rather than create new rules. The primary request is for the FCA and government to issue a public statement demanding banks adopt a risk-based, case-by-case approach to payment restrictions. The council also urged the FCA to require banks to establish a framework that recognizes differences between exchanges, moving away from sector-wide limits.

Further recommendations include the creation of a formal forum for banks, regulators, and digital asset firms to share fraud data and best practices. The council advises the FCA to promote a more nuanced approach to retail customer risk, distinguishing between vulnerable and experienced users. Finally, it called for the removal of unnecessary frictions for FCA-registered exchanges, which it states could be viewed as anti-competitive.

Meanwhile, the UK’s comprehensive cryptoasset regulatory regime under the Financial Services and Markets Act 2000 is proceeding, with HM Treasury having laid the relevant regulations before Parliament on Dec. 15, 2025. The FCA is currently consulting on final rules, with full commencement of the authorization regime expected in October 2027.

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