This follows the release of a new crypto banking report, compiled by crypto tax experts Recap, following a number of new rules and regulations by banks since the collapse of FTX.
CryptoUK, the self-regulatory trade association for the UK cryptoasset industry, and Recap have joined forces to urge the Government to take back the onus from the banks to raise concerns around the lack of basic banking facilities for those investing in crypto in the UK.
Since becoming UK Prime Minister, Rishi Sunak has made it clear that he wants the UK to be a global crypto hub, and has pushed for widespread adoption of blockchain technologies for the widespread benefit of the national economy.
However banks have implemented a number of policies and rules to limit what people can do with crypto, including Chase UK blocking customers from making crypto transactions via debit card or by outgoing bank transfer.
“We have yet to see any direct action being taken by the Government to intervene in these issues,” said Su Carpenter, director of operations at CryptoUK.
“The risk averse approach being taken by UK banks to both the banking of crypto firms and the blanket bans of transactions from account holders to crypto exchanges totally goes against the Government’s well publicised ambition for the UK to be a global crypto hub.
“Businesses are being forced down the route of using overseas payments service providers and third party organisations to operate their businesses. This places the UK in an uncompetitive position when it comes to organisations choosing us to domicile their operations. Not only does this reduce the opportunities for talent development and job creation, but also loses the UK economy significant amounts of potential tax revenue.”
The crypto banking report also saw Recap poll Reddit, Twitter and LinkedIn users to reveal that 38% of investors have recently changed banks due to their crypto policies, while 22% have strongly considered it.
Dan Howitt, co-founder and CEO at Recap commented:
“Crypto is often seen as an avenue for financial freedom – but is this really the case if banks are able to dictate what people can and can’t do with their money?
“The UK needs a level playing field for all people investing in crypto. As the UK continues to move to a cashless society, we’re at the mercy of banks overreaching further into our lives, and choosing to dictate what is and what isn’t a risk. Ultimately, financial institutions need to be able to encourage investment and innovation to support the government’s plans.”
Recap also named Revolut as the most crypto-friendly bank in the UK, due to its numerous offerings for crypto holders – including a crypto-specific card, and even the opportunity to deepen their knowledge, with its ‘Crypto Learn and Earn’ scheme.
Readers can see the full research, including all banks analysed, here: https://recap.io/blog/revealed-the-most-crypto-friendly-uk-banks
To understand how much of an impact banking has on the crypto community, Recap issued a poll across Reddit, Twitter and LinkedIn to identify the public’s feelings about the regulation changes at banks.
Recap compiled all the banks in the UK and looked at its policies on these factors to create an index out of a score of 6100:
- Can you trade through an online or mobile banking platforms?
- Can you trade through eToro?
- Does it have a full cryptocurrency policy on website?
- Total limit of debit card payment to exchanges.
- Total limit over 30-day period to exchanges.
- Can you purchase cryptocurrency directly on a credit card?
- If they have any extra crypto offerings, including a specific crypto card.
- Do they have policies that forbid customers from using regulated cryptocurrency exchanges?
- Are they protected under the Financial Services Compensation Scheme?
- Number of new complaints (banking and credit) to the Financial Ombudsman in 2nd half of 2022
- Number of new complaints (investments) to the Financial Ombudsman in 2nd half of 2022
Data correct as of September 2023
