UK Crypto Campaign Targets Bank Transfer Restrictions

The UK's Stand With Crypto campaign is urging its members to challenge British banks restricting transfers to cryptocurrency exchanges, citing a report that found 40% of crypto transactions are blocked or restricted by UK banks. The campaign argues that many restrictions apply to transfers involving exchanges registered with the country's Financial Conduct Authority and do not account for individual customer risk profiles.

According to the report, one exchange recorded nearly £1 billion in declined transactions over a one-year period due to bank-side rejections, while 80% of surveyed platforms reported an increase in blocked or restricted transfers. Stand With Crypto is providing a tool on its website that generates letters challenging transfer restrictions, with responses from banks expected to inform the campaign's next steps.

Mark Fairless, CEO of UK clearing bank ClearBank, stated that banks should take a risk-based approach to crypto-related payments rather than imposing broad restrictions across the sector. He emphasized that interventions should be targeted and proportionate, as broad blocks risk undermining competition and the ability of regulated firms to operate effectively in the UK.

The campaign underscores a broader regulatory conversation about access to crypto markets and the role of banks in enforcing anti-money-laundering regimes. Regulators have emphasized the need for a balance between consumer protection and competitive access to regulated crypto services. The UK's stance on bank-partnered access to crypto markets will shape the viability of domestic players and international cooperation on cross-border standards.