Three years without change! The Bank of England's one-size-fits-all approach to crypto is continuously obstructing legal Bitcoin transactions.

Written by: Mathew Di Salvo

Translation: AididiaoJP, Foresight News

The issue of "de-banking" for Bitcoin and other crypto assets is sparking fierce debates at the parliamentary level in the UK. Recent evidence submitted by Bitcoin Policy UK to the UK Parliament’s Crypto and Digital Assets APPG shows that currently, about 40% of bank transfers to crypto exchanges in the UK are intercepted or delayed, with no improvement in the last three years.

No improvement in three years: The gap between policy and reality

Bitcoin Policy UK openly stated on the X platform (formerly Twitter): "It has been nearly three years since we first raised the 'one-size-fits-all' banking restrictions with the City Minister. The evidence we submitted to the Crypto and Digital Assets APPG shows that the situation has not improved at all."

The root of the problem lies in the current policy framework in the UK, which lumps all "cryptocurrencies" together—Bitcoin is subjected to rules that apply to unsecured tokens and issuer-reliant stablecoins. Since 2023, the UK government has clearly stated that banks should assess risks on a case-by-case basis rather than applying blanket restrictions by industry. However, Bitcoin Policy UK pointed out that actual operations have not kept pace, and as the UK moves towards a comprehensive crypto asset regulatory framework by October 2027, the gap between this policy and reality continues to widen.

Which banks are blocking? Which are setting limits?

According to evidence submitted by Bitcoin Policy UK, major banks in the UK have implemented varying degrees of restrictions on crypto transactions:

Complete block (outright refusal of transfers and card payments):

• Virgin Money
• Metro Bank
• Starling Bank
• TSB
• Chase UK

Setting transfer limits:

• Barclays: £2,500 (approximately $3,400) per transaction limit
• HSBC: £2,500 (approximately $3,400) per transaction limit

In addition, HSBC, NatWest, Monzo, and Nationwide also limit monthly transfers into crypto exchanges to between £5,000 and £10,000.

Industry victims: From startups to exchanges, no one is spared

The impact of these restrictions extends far beyond individual investors. A survey jointly released in January 2025 by Startup Coalition, the UK Cryptoasset Business Council, and Global Digital Finance showed that half of the responding UK fintech and crypto companies had been denied account openings or had their accounts closed, with only 14% successfully opening and maintaining accounts at the nine major banks in the UK. Notably, most of these companies operate locally in the UK, rather than foreign entities with no domestic business.

Bitcoin Policy UK added that 80% of exchanges reported that restrictions have tightened further in the past year, with none reporting an improvement. An IG Group survey in August 2025 also revealed that 40% of active crypto investors have encountered interception or delayed payments by their banks.

The report from the UK Cryptoasset Business Council further disclosed that among the ten major centralized exchanges surveyed, one reported that in the past year alone, transaction losses due to bank refusals amounted to nearly £1 billion (approximately $1.2 billion) — this is limited to bank transfer and card payment channels. 70% of exchanges described the banking environment in the UK as "becoming more hostile" over the past year, scoring the difficulty of banking access in the UK at 7.9 out of 10, higher than other global markets. One major exchange bluntly stated in the report: "This exacerbates the growth difficulties in the UK market and remains the largest single barrier to the launch or expansion of new crypto products in the UK. Therefore, we have prioritized developing other markets."

Four demands: From regulatory statements to data transparency

Bitcoin Policy UK has put forward four specific demands in the evidence submitted:

• Regulators should explicitly state that Bitcoin activities conducted through FCA-registered exchanges should not be subjected to "one-size-fits-all" restrictions;
• Banks are obligated to provide specific reasons for refusals and offer appeal channels;
• Confirm that FCA registration can serve as a risk assessment basis (similar to practices in Hong Kong);
• Regularly publish quantitative data on the extent of restrictions.

The UK Cryptoasset Business Council also pointed out that the current "de-banking" practices may have violated several existing UK laws, including section 105 of the 2017 Payment Services Regulations (which requires case-by-case assessments of payment restrictions), FCA's Consumer Duty mandate (to avoid causing foreseeable harm to customers), and the 1998 Competition Act (to prevent anti-competitive practices that distort the market).

Official ambitions and the contradiction of reality

In December 2025, City Minister Lucy Rigby stated that the UK could "undoubtedly" compete with the US to become an international center for crypto assets. She noted that the proposed regulatory framework reflects the UK’s intention to "lead global digital asset applications."

In fact, the UK government released a draft of crypto asset regulatory legislation in December 2025, with a mandatory licensing system set to officially take effect on October 25, 2027. The FCA finalized a comprehensive crypto regulatory framework by June 2026.

Rigby had also expressed to Parliament: "Under the new UK crypto regime, businesses must obtain FCA permission to provide related crypto asset services, and the government does not want licensed businesses to be restricted by banking service providers solely due to their industry."

However, the survey report by Bitcoin Policy UK indicates that there is still a significant execution gap between policy proclamations and the actual operations of banks.

Parliamentary pressure: Bank CEOs respond

On August 11, 2026, Gurinder Singh Josan CBE MP and Lord Vaizey of Didcot, co-chairs of the Crypto and Digital Assets APPG, wrote to all CEOs of major UK banks, asking them to explain their current policies towards crypto and digital asset businesses. The letter raised six questions regarding whether banks provide services to crypto businesses, what restrictions are placed on relevant transactions and their decision factors, and whether banks will adjust their practices after the FCA’s regulatory system takes effect.

The group warned that restricting access to banking services "could become one of the largest single barriers to the growth of the UK's crypto and digital asset businesses," including exchanges, custodians, payment companies, wallet providers, tokenization companies, and stablecoin issuers, and may undermine the effectiveness of reforms in the UK crypto system. The deadline for written opinions in the survey was set for August 31, 2026.

On one side, officials shout their ambition to "become a crypto center," while on the other, the banking system effectively "blocks" legal Bitcoin transactions—if the UK is to truly realize its crypto ambition, it seems there is a long way to go.