Lawmakers warn banks refusing crypto clients could paralyze UK market growth

Around 40% of domestic crypto transfers are currently delayed or outrightly rejected by British banks. Moreover, four-fifths of exchanges have seen an increase in the number of blocked transactions over the past 12 months.

Some lawmakers are now questioning the trend. They have cautioned that high-street banks refusing crypto clients could potentially paralyze UK market growth. 

So far, leaders of the UK’s crypto and digital assets parliamentary group have called on British banks to explain their stance toward digital asset businesses after multiple reports of crypto firms struggling to obtain bank accounts.

For some time now, crypto executives have also been protesting that financial institutions are shutting out legitimate digital asset businesses, even when those firms are properly registered and comply with existing rules.

In June, Stand With Crypto UK even mobilized its 286,000 members to challenge British retail banks over the blanket restrictions on crypto transactions. 

The UK government had earlier called for fair treatment of crypto providers.

Earlier in July, the UK Parliament’s cross-party group for digital assets opened a probe to scrutinize how mainstream lenders block accounts and restrict transactions for digital asset firms. At the time, the group insisted, “Access to banking services is fundamental for any legitimate business, and where unnecessary barriers exist they have the potential to hinder growth, investment and innovation.”

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