Stifling UK system forcing crypto firms to bank elsewhere, new survey shows

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A new survey involving crypto firms in the UK shows that many of them are opening bank accounts in other countries because of the difficulties of doing so in their own turf. The results reflect a strong sign of discrimination by traditional financial institutions against crypto companies.

The survey was done by the self-regulated crypto organization CryptoUK, Bitcoin Magazine reports. Of the 40 crypto firms surveyed, 55 percent revealed that they have been denied by UK banks when trying to open accounts. It was also noted that of these rejections, half were not even given any reasons for why it occurred.

73 percent of respondents also revealed that they have opened bank accounts in other countries which span 15 jurisdictions. These included the U.S. and even several EU nations that have been proactive in coming up with crypto regulations and have been quite welcoming of crypto business.

CryptoUK chair, Iqbal V. Gandham pointed out how this results in making the UK home for crypto firms quite difficult.

“Many in the crypto sector, including CryptoUK’s members, want to call the U.K. home, invest in innovation and grow their operations here,” Gandham said. “But as our survey shows the often-impossible task of opening a bank account is forcing more companies to turn to other jurisdictions, which are often riskier and offer less certainty to companies.”

As a result of these kinds of barriers, 69 percent of the responders are now actually considering moving out of the UK. A spokesperson for CryptoUK said that if the UK continues down this path, it has much to lose.

“The U.K. has the opportunity to become a world leader within the crypto economy, but if we want the brightest minds and the best firms to call the U.K. home, the government must support our emerging sector through appropriate, proportionate and well-designed regulation,” the spokesperson said.

This attitude is not unique to the UK alone. Many other countries are taking a much harsher stance towards cryptocurrency. Just recently, an inter-ministerial committee submitted its report and draft bill to the Indian government to completely ban cryptocurrencies.