Even as UK crypto regulations work their way into the system, most banks in the country still block their customers’ access to even registered crypto exchanges.
The Financial Conduct Authority’s list of crypto asset companies, which certifies that they comply with the country’s anti-money laundering and anti-terrorism financing regulations, now stands at 59 companies, including exchanges like Coinbase (COIN), Kraken and Gemini (GEMI).
However, customers wishing to invest on these platforms risk finding themselves blocked by their banks. In a report released on Monday, lobby group UK Cryptoasset Business Council found that seven of the ten major exchanges operating in the country perceive increased hostility from domestic banks over the past year. The other three said things remained unchanged.
In total, 80% of exchanges reported an increase in the number of customers facing locks or limits on bank transfers in 2025 and 70% described the banking environment as more hostile today than 12 months ago. The survey found that 40% of transactions were blocked or delayed.
“The debanking of the UK’s digital asset economy poses a major barrier to its growth,” the group wrote in the report. “…almost all major banks and payment services companies in the UK are currently imposing blanket transaction limits or complete blockages on crypto-asset trading. This trend is getting worse – with new restrictions being implemented…”
The FCA, which in the past has been very restrictive when it comes to crypto companies, has become more open and last week began consultations on new rules to be implemented by October 2027. The path to formal regulation of cryptocurrencies in the UK became clearer in late 2025 with Treasury legislation that extended existing financial rules to cover the sector.
“If we are registered with the FCA, it should not be as difficult for UK companies,” one of the exchanges said. “As a result, we prioritized other markets. »
A cryptocurrency exchange said it saw a drop of nearly $1.4 billion in transactions in 2025 due to declines from banks.
The banks are not moving. Among the country’s biggest banks, HSBC (HSBA), Barclays (BARC) and NatWest (NWG) all impose limits on the amount customers can transfer to their crypto exchange accounts. Many others block any transfers altogether, including Chase UK, Metro Bank, TSB and Starling Bank, justifying its stance by claiming it is for the good of its customers in light of the high risk digital assets pose.
“Starling does not allow customers to buy or sell cryptocurrencies by debit card, GBP bank transfer, or bank transfers in other currencies,” a spokesperson told CoinDesk. “We made this decision to help protect our customers.”
When asked whether it agreed with cryptocurrency exchanges’ perception of a hostile environment, the bank responded by saying only: “we constantly monitor our policies and note that the regulation of cryptocurrency companies is currently under review by the FCA.”
A spokesperson for UK Finance, which represents more than 300 banks and financial services providers, told CoinDesk that the organization supports the FCA’s work to regulate crypto, saying it supports stablecoins and keeping cryptocurrencies under strict rules.
“We certainly have no resistance to crypto,” the spokesperson said. However, individual banks “have a duty to protect their customers and make risk-based decisions regarding possible threats of fraud, scams and economic crime.”
Several crypto exchanges contacted by CoinDesk declined to comment, with one saying the caution reflected regulatory and legal reasons.
The FCA and Treasury declined to comment.
