UK Banks Continue Blocking Crypto Access Despite Growing FCA Regulation

Even as the U.K. moves closer to comprehensive crypto regulation, most major banks in the country are still restricting or blocking customer access to crypto exchanges, including those officially registered with the Financial Conduct Authority (FCA). This ongoing friction is raising concerns about the future of the U.K.’s digital asset industry, despite clearer regulatory signals from policymakers.

The FCA’s crypto asset register, which confirms compliance with anti-money laundering (AML) and counter-terrorism financing rules, now includes 59 companies. Well-known exchanges such as Coinbase, Kraken, and Gemini are on the list, signaling a degree of regulatory legitimacy. However, registration has not translated into smoother banking access. According to a new report from the UK Cryptoasset Business Council (UKCBC), banks have become more hostile toward crypto businesses over the past year.

The report, published Monday, surveyed 10 major crypto exchanges operating in the U.K. Seven of them reported increased resistance from banks, while the remaining three said conditions had not improved. Alarmingly, 80% of exchanges said more customers faced blocked or limited bank transfers in 2025, and 70% described the current banking environment as more hostile than a year earlier. On average, 40% of attempted transactions were delayed or declined, with one exchange reporting nearly $1.4 billion in rejected transactions last year alone.

Major banks including HSBC, Barclays, and NatWest impose caps on transfers to crypto platforms, while others such as Chase UK, Metro Bank, TSB, and Starling Bank reportedly block crypto-related transfers entirely. Starling Bank stated that it does not support crypto transactions via debit cards or bank transfers, citing customer protection and the perceived risks of digital assets.

Despite this, regulators appear more open. The FCA recently launched consultations on new crypto rules, expected to take effect by October 2027. In late 2025, the U.K. Treasury also passed legislation extending existing financial regulations to cover crypto assets, offering a clearer regulatory path.

Still, crypto firms argue that FCA registration should ease banking relationships. Some exchanges have even deprioritized the U.K. market as a result. While banks and industry groups maintain their stance is driven by fraud and financial crime concerns, the growing disconnect between regulation and real-world access remains a major challenge for the U.K.’s crypto economy.