Although the UK’s crypto regulations are working their way through the system, most of the country’s banks still block their customers’ access to even registered crypto exchanges.
The Financial Conduct Authority’s list of crypto-active companies that confirm they comply with the country’s anti-money laundering and anti-terrorist financing rules now stands at 59, including exchanges such as Coinbase (COIN), Kraken and Gemini (GEMI).
Still, customers looking to invest on these platforms are likely to find themselves hindered by their banks. In a report published on Monday, lobby group UK Cryptoasset Business Council found that seven out of the top 10 exchanges operating in the country are experiencing increased hostility from national banks over the past year. The remaining three things mentioned remain unchanged.
Fully 80% of exchanges reported an increase in customers experiencing blocks or limits on wire transfers by 2025, and 70% described the banking environment as more hostile now than 12 months ago. The study found that 40% of transactions were blocked or delayed.
“The debanking of the UK’s digital asset economy is a major impediment to its growth,” the group wrote in the report. “… almost all the major UK banks and payment service firms currently impose general transaction limits or complete blocks on crypto-asset exchanges. This trend is steadily worsening – with new restrictions being implemented …”
The FCA, which was previously very restrictive when it came to crypto businesses, has demonstrated more openness and last week began advising on new rules to be implemented by October 2027. The path to formal regulation of cryptocurrency in the UK became clearer in late 2025 with legislation from the Treasury extending existing financial regulations to the industry.
“If we are registered with the FCA, it shouldn’t be so challenging for UK companies,” said one of the exchanges. “As a result, we have prioritized other markets.”
One crypto exchange said it observed nearly $1.4 billion in declining transactions by 2025 due to bank-side rejections.
The banks are not budging. Among the country’s biggest banks, HSBC ( HSBA ), Barclays ( BARC ), and NatWest ( NWG ) all set limits on how much customers can transfer to their crypto exchange accounts. Many others are completely blocking any transfer, including Chase UK, Metro Bank, TSB and Starling Bank, which justifies its stance, saying it is for the benefit of its customers given the high risk digital assets represent.
“Starling does not allow customers to buy or sell cryptocurrencies by debit card, bank transfer in GBP or by bank transfer in other currencies,” a spokesperson told CoinDesk. “We have made this decision to help protect our customers.”
When asked if it agrees with crypto exchanges’ perception of a hostile environment, the bank only replied, “we keep our policies under constant review and note that regulation of cryptocurrency firms 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 crypto-custody under robust rules.
“There is absolutely no opposition to crypto from us,” the spokesperson said. However, individual banks have a “duty to protect their customers and make risk-based decisions about possible fraud, fraud and threats of financial crime.”
Several crypto exchanges contacted by CoinDesk declined to comment, with one saying the caution reflects regulatory and legal reasons.
The FCA and the Treasury declined to comment.
