U.K. banks refuse to work with crypto firms

 

U.K. banks have recently started showing an intent not to work with crypto-related firms by rejecting applications, freezing accounts, and imposing more paperwork, according to a recent report from Bloomberg citing sources familiar with the issue. British banks' anti-crypto approach was reportedly heightened with the U.S. banking crisis triggered by the consecutive collapses of Silvergate Bank, Silicon Valley Bank (SVB), and Signature Bank within one week in March.  The report pointed out that some crypto firms had to issue a complaint with the government since the local banks' anti-crypto approach was exacerbated.  London-based crypto startup SavingBlocks' founder, Edouard Daunizeau, stated that seven of nine local banks rejected his application for a bank account.  Daunizeau added that the other two lenders asked for additional documents with details on how the firm tracks the client activity.  Joe David, a co-founder of fellow crypto-focused firm Nephos Group, also said money transfer platform Wise froze his company's accounts for three months in November, claiming that the firm violated the terms and conditions.  After an inquiry, a Wise spokesperson implied that they do not support crypto-related businesses and are actively freezing the accounts of clients involved in such activities.  Many U.K.-based banks, including HSBC, Nationwide, and NatWest, also limited crypto trading for their clients over the last several months.  The U.K. Financial Conduct Authority, the country's financial regulator, has seen crypto as a high-risk asset class for many years despite U.K. Prime Minister Rishi Sunak's push to make the country a global crypto hub. Zoom Out: In February, HSBC, the U.K.'s largest bank, restricted its customers from buying crypto assets using credit cards.  British bank Nationwide also stopped letting customers purchase cryptocurrencies with credit card payments to crypto exchanges, limiting the daily limit of debit-card purchases to $5,965 for crypto assets. In March, NatWest similarly joined other British banks limiting payments to crypto exchanges by restricting the daily payments to £1,000 ($1,218) and monthly payments to £5,000 ($6,090). Other British banking giants that put restrictions on crypto trading for U.K. customers include Barclays, Banco Santander, and Lloyds Banking Group.