British banks block crypto payments despite UK push to become digital asset hub

10 June 2026 , 21:16

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British banks block crypto payments despite UK push to become digital asset hub

The UK’s crypto sector is launching an effort to convince British banks to lift bans on transfers to crypto exchanges. Crypto exchanges are heading for a “firm and proportionate” regulatory framework with rules that come into force next year – banks are not fans of their decentralised rivals.

Crypto advocacy group Stand With Crypto UK – supported by the large exchanges like polygon, coinbase, and blockchain.com – has organised a letter-writing campaign to banks to end the “blanket ban.” Their research says 40% of all UK crypto transactions are blocked or restricted by UK banks and 80% of exchanges surveyed reported an increase in blockages over the past year.

All of major British banks block their customers from sending money to crypto exchanges, even ones that are registered with the FCA.

Meanwhile banks are all hiring their own digital asset teams internally to build out their own capabilities while they block the exchanges. Crypto exchange Coinbase is concerned – its head of policy in Europe said: “The government has set out a vision to make the UK a global hub for digital assets and Web3. That vision requires retail participation. But the banks are choking off the on-ramp from normal money into crypto at a time when the global race for digital assets is intensifying.” 

Thomas Brown

Head of Investigations