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.
- 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.
