2. März 2024

UK Banks Reject Crypto Firms: Report

• UK banks have been refusing to work with crypto companies, resulting in rejected applications and frozen accounts.
• Prime Minister Rishi Sunak has sought to make the UK a digital asset hub but local banks are working against this goal.
• Crypto executives have experienced difficulties in securing banking services, some of which have lodged complaints with the government.

UK Banks Refuse to Work With Crypto Companies

Crypto Firms Struggle To Obtain Banking Services

Crypto firms in the United Kingdom are struggling to obtain banking services, Bloomberg reported Sunday, citing multiple sources. Local crypto executives expressed frustration with rejected applications, frozen bank accounts, and overwhelming paperwork. The situation was exacerbated by the departure of United States-based lenders Silvergate Capital, Signature Bank, and Silicon Valley Banks.

Banking Restrictions Hinder Crypto Firms in the UK

According to the report, the banking issue in the UK has become so dire that some companies have lodged complaints with the government. Despite Prime Minister Rishi Sunak’s efforts to establish the UK as a digital asset hub, local banks are working against this objective. Edouard Daunizeau, the founder of SavingBlocks, a crypto startup offering a range of portfolios for passive investors, revealed that he had difficulties securing his company’s bank account. According to the report, Daunizeau was rejected by seven of the nine lenders he approached for a bank account. The two banks that accepted his application have bugged him for additional documentation, seeking details on how he monitors his clients‘ transactions.

Joe David Experiences Difficulty Securing Banking Services

Joe David co-founded crypto-focused accounting and professional services firm Nephos Group and disclosed that money transfers were difficult due to freezing accounts or requests for additional paperwork from financial institutions — something he did not experience when dealing with US-based entities such as Silicon Valley Bank or Signature Bank before they exited their operations from Europe last year:
„It’s almost impossible now [in Europe]“.

UK Government Urged To Act On Behalf Of Cryptocurrency Companies

The lack of access to banking services is taking its toll on cryptocurrency businesses operating within Britain’s borders who are now imploring politicians and regulators to take steps towards enabling them better access banking facilities without having to go through arduous processes first: “We need support from our government or from our regulator” – Edouard Daunizeau

UK Banks Cited As Unwilling To Adapt To Digital Assets

The British Financial Conduct Authority (FCA) has previously warned about “the potential impact on consumers if firms cannot find suitable payment solutions or reliable custodians” – but there appears no solution yet as many British banks remain unwilling “to adapt their systems“ according to Joe David: “They don’t want anything new“.