The British split. London repeats its desire to become a global hub for digital assets while nine of the country's ten largest retail banks block or cap payments to crypto platforms. The Financial Conduct Authority (FCA) has just confirmed that it will not force anyone to reopen the floodgates. This position will hold even after its full crypto regime comes into effect on October 25, 2027.
A British saver can buy an ETN backed by Bitcoin since October 2025. However, he cannot place it in a tax-free envelope: in April, the Treasury reserved this tax advantage for IFISA (Treasury tax reclassification), a niche that almost no broker offers for this product. The same saver will also come up against a ceiling of 1,000 pounds if he wants to transfer this money to an exchange registered with the regulator. Our investigation into banking blocks already documented this lock.
Key Points
Chase, Starling and seven other major banking brands block or cap transfers to crypto exchanges
No legal constraints will force banks to relax these rules, not even the new FCA regime
The bill for reimbursing victims of fraud, capped at 85,000 pounds per file, explains banking prudence
Bitcoin ETNs have remained excluded from classic ISAs since April (only IFISA, a niche that no one offers, accepts them), and transfers to an approved exchange remain capped at 1,000 pounds
Crypto: nine of the ten major British banks keep the tap closed
The picture has hardly changed in three years. Chase UK, the British subsidiary of JPMorgan, banned payments linked to cryptocurrencies outright in October 2023. Starling Bank closed the same door shortly after. The others preferred capping, less spectacular and just as dissuasive.
NatWest limits transfers to platforms to 1,000 pounds per day and 5,000 pounds over thirty days;
Santander UK caps each transaction at £1,000, with a limit of £3,000 over thirty days;
HSBC caps transfers to exchanges at 2,500 pounds per transaction and 10,000 pounds over thirty days, credit card excluded;
Barclays applies the same limit of 2,500 pounds per transfer and 10,000 pounds per month, and blocks any credit card purchases;
Nationwide prohibits the purchase of crypto by credit card and limits payments to debit card;
Lloyds and Virgin Money also block the purchase of digital assets on credit.
Why banks protect themselves
The reason is primarily due to the fraud bill. Since October 7, 2024, British establishments must reimburse victims of authorized push payment (APP) fraud. The ceiling rises to 85,000 pounds per file. The burden is shared equally between the issuing bank and the one receiving the funds. Investment scams regularly pass through an exchange platform. Restricting the outgoing transfer therefore remains the least expensive way to limit this exposure.
The clientele concerned is not a niche audience. The FCA put the proportion of crypto holders at the end of 2024 at 12% of British adults (FCA study). That's almost 7 million people. These customers then switch to Revolut or more accommodating electronic money establishments. Flows are leaving the big banks, but the risk of fraud is not decreasing.
FCA refuses to constrain banks, even after October 2027
The regime expected for October 25, 2027 will bring exchange platforms, asset custody and intermediation within the regulatory scope. Staking and the issuance of stablecoins will also be included. Players will have to obtain approval, meet capital requirements and apply Consumer Duty. The latter requires financial firms to act in the interests of their clients (FCA roadmap).
The regulator hopes that these safeguards will make general bans superfluous and that banks will lift them on their own. However, it excludes any legal obligation to process crypto payments. Risk appetite remains a commercial decision, including in the face of a platform approved and supervised by its own teams.
On October 8, 2025, this same FCA reopened access to crypto ETNs listed on recognized British markets to individuals. In April, the Treasury excluded these products from traditional ISAs in favor of IFISAs, an envelope that neither Hargreaves Lansdown nor the other major platforms combine with a Bitcoin ETN. HL also opened its own on September 3 to its informed clients only, on a tax-advantaged securities account and excluding ISA. An investor is therefore refused both the tax shelter and a transfer of 2,000 pounds to Kraken or Coinbase.
