UK crypto advocates criticize banks for blocking 40% of crypto transactions

Nearly half of all transfers headed to crypto exchanges in the UK never arrive. According to a January 2026 report from the UK Cryptoasset Business Council (UKCBC), roughly 40% of customer payments to crypto platforms are being blocked or delayed by major banks, a figure that makes the country’s stated goal of becoming a global crypto hub feel less like a strategy and more like a wish.

The report, based on a survey of 10 of the UK’s largest centralized exchanges, paints a picture of an industry being slowly suffocated by its own banking partners. One exchange alone reported receiving £1 billion in declined transactions over the past year.

The banks behind the blocks

The institutions enforcing these restrictions aren’t fringe players. Chase UK, Starling Bank, Metro Bank, TSB, HSBC, Barclays, and NatWest are all named as banks continuing to impose blanket transaction limits or outright payment blocks on crypto-related transfers.

These restrictions apply even to exchanges that have gone through the trouble of registering with the Financial Conduct Authority. Firms in the digital asset space have been required to register with the FCA under Money Laundering Regulations since 2020.

The UKCBC report rates the UK at 7.9 out of 10 for banking access difficulty for digital asset firms. A full 80% of surveyed exchanges reported that customer transfer friction actually increased during 2025. Not a single exchange reported any improvement in customer access to funds.

Why banks are pulling up the drawbridge

The primary driver behind these restrictions appears to be fraud prevention, specifically the Authorized Push Payment (APP) scam reimbursement rules. Under these regulations, banks can face significant financial liability when customers fall victim to scams.

What this means for the UK crypto market

According to the UKCBC survey, 70% of exchanges said that ongoing debanking practices were actively stifling their willingness to invest, scale operations, or hire within the UK.

The UK government has been working on a comprehensive cryptoasset regulatory regime that is scheduled for evaluation and potential implementation by 2027. The UKCBC report lands at a critical moment, and the gap between policy ambition and banking reality has never been more visible.

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