Crypto: Uk Banks Block Or Delay 40% Of Crypto Exchange Transfers: Survey

A new UK Cryptoasset Business Council report found that almost all major banks are imposing blanket limits or blocks on transfers to crypto exchanges, effectively debanking crypto users.

A new survey by the UK Cryptoasset Business Council (UKCBC) found that transfers between United Kingdom bank accounts and crypto exchanges are frequently blocked, delayed or refused, even when customers are trying to use regulated platforms.

​The survey, titled Locked Out: Debanking the UK’s Digital Asset Economy, draws on responses from 10 of the UK’s largest centralized exchanges, which collectively serve millions of UK consumers and have processed hundreds of billions of pounds in transactions.

It aims to replace anecdotes with hard numbers on how current banking practices affect the sector. The UKCBC argues that widespread restrictions are a major obstacle to growth and are already undermining the UK’s ambitions to be a leading hub for digital assets.

Eight in 10 exchanges reported a noticeable increase over the past 12 months in customers experiencing blocked or limited transfers, with none seeing a decrease, the survey found.

Based on the exchanges’ data, UKCBC estimates that 40% of transactions to crypto exchanges are either blocked or delayed by the banks in question.

Simon Jennings, executive director of the UKCBC, told Cointelegraph, “We acknowledge that fraud is a legitimate concern and we actively want to work towards a solution. However, there is a widespread concern within the industry that banks are using compliance posture as a proxy to hinder growth of the sector.”

Related: UK finance watchdog nears final consultation step on key crypto rules

One leading UK‑founded exchange observed close to 1 billion pounds ($1.4 billion) in declined UK transactions over the past year, attributable to bank‑side rejections of card payments and open‑banking transfers.

The pattern spans a wide range of providers, with most major high‑street banks now imposing strict limits or blocks on both bank transfers and card payments to exchanges, while several challengers allow payments but with tight caps or 30‑day limits.

Source: CoinTelegraph