The UK wants to become a global hub for digital assets, yet access to crypto remains difficult as several major banks continue to block or limit transfers to exchanges. The tension is becoming more visible as Britain prepares to implement a broader cryptoasset regime in 2027.
According to Bitcoin Policy UK, roughly 40% of bank-to-exchange transfers are currently blocked or delayed. The group submitted evidence to the Crypto and Digital Assets All-Party Parliamentary Group’s inquiry into banking access, arguing that conditions have not improved.
“Almost three years after we first raised blanket banking restrictions with the City Minister, our evidence to the Crypto and Digital Assets APPG inquiry shows the problem hasn’t improved,” Bitcoin Policy UK said.
It added: “Roughly 40% of bank-to-exchange transfers in the UK are currently blocked or delayed.”
Virgin Money, Metro Bank, Starling Bank, TSB and Chase UK block crypto transfers or card payments outright, while Barclays and HSBC cap transfers at GBP 2,500 per transaction.
A January 2025 survey by Startup Coalition, the UK Cryptoasset Business Council and Global Digital Finance found that half of firms had either been refused a bank account or had one closed. Only 14% opened and maintained an account with a major bank.
Bitcoin Policy UK also said 80% of exchanges reported that restrictions had increased, while none saw an improvement. Separately, an IG Group survey from August 2025 found that 40% of active crypto investors had experienced a blocked or delayed payment.
Banks argue that crypto transactions can expose customers to scams and irreversible losses. Since October 2024, banks have carried mandatory reimbursement liability for certain authorized push payment fraud, giving them an incentive to apply tighter controls.
However, critics argue that blanket restrictions fail to distinguish between offshore businesses and FCA-registered platforms.
“Banks should not be able to frustrate a national objective on financial innovation by acting as gatekeepers to those platforms,” the argument states.
Bitcoin Policy UK has called for clearer regulatory guidance, specific reasons when transactions are rejected, an appeals process and recognition that FCA registration can serve in risk assessments.
The issue will become more important as the UK moves toward full crypto regulation from October 2027. City Minister Lucy Rigby said in December that Britain can ‘without a doubt’ compete with the United States and become an international hub for cryptoassets.
If banking access does not improve, the UK could face a widening gap between its digital-asset ambitions and the payment infrastructure needed to support them.
Also Read: Bitcoin to USD 150K by 2027? What Bernstein’s New Forecast Means for Investors
1. Why are UK banks restricting crypto transactions?
Banks cite fraud, scams and the difficulty of reversing crypto transactions as major risks. Reimbursement obligations for certain authorized push payment fraud have also increased incentives for tighter controls.
2. How common are crypto payment restrictions in the UK?
According to Bitcoin Policy UK, roughly 40% of bank-to-exchange transfers are currently blocked or delayed. It also said 80% of exchanges reported that restrictions had increased over the previous year.
3. Which UK banks restrict crypto transfers?
Bitcoin Policy UK said Virgin Money, Metro Bank, Starling Bank, TSB and Chase UK block certain crypto payments outright. Barclays and HSBC were cited as imposing transfer limits of GBP 2,500 per transaction.
4. How could banking restrictions affect UK crypto adoption?
Limited access to banking rails can make it harder for consumers and businesses to use regulated crypto platforms. This could weaken competition and create a gap between the UK’s digital-asset ambitions and practical market access.
5. What changes is Bitcoin Policy UK requesting?
The group wants clearer regulatory guidance, specific reasons for rejected transactions, an appeals process and greater recognition of FCA registration in bank risk assessments. It is also seeking regular reporting on restriction levels.