UK Crypto Group Urges Members to Challenge Banks Over Transaction Restrictions
Quick Look
- Stand With Crypto UK is launching a campaign urging its 286,000 members to challenge British banks restricting transfers to cryptocurrency exchanges.
- The group cites a report finding 40% of crypto transactions are blocked, impacting regulated platforms and potentially hindering competition.
AI-generated summary
Why It Matters
Stand With Crypto UK is urging its 286,000 members to challenge British banks that are restricting transfers to cryptocurrency exchanges. This action is prompted by a report indicating that 40% of crypto transactions are blocked by UK banks, often affecting regulated platforms and not considering individual risk profiles.
Stand With Crypto UK is urging its 286,000 members to challenge British banks restricting transfers to cryptocurrency exchanges, arguing that blanket limits on transactions to regulated platforms are restricting access to digital assets.
The new campaign cites a report from the UK Cryptoassets Business Council that found 40% of crypto transactions are blocked or restricted by UK banks. The group argues that many of the restrictions apply to transfers involving exchanges registered with the country's Financial Conduct Authority and do not account for individual customer risk profiles.
According to the report, one exchange recorded nearly 1 billion British pounds in declined transactions over a one-year period due to bank-side rejections, while 80% of surveyed platforms reported an increase in blocked or restricted transfers.
Stand With Crypto said members can submit complaints through a tool on its website that generates letters challenging transfer restrictions, with responses from banks expected to inform the campaign's next steps.
“Your money. Your choice.” is the tag line of Stand With Crypto UK's advocacy campaign.
Source: Stand With Crypto UK on X.com
Mark Fairless, CEO of UK clearing bank ClearBank, told Cointelegraph that banks should take a risk-based approach to crypto-related payments rather than imposing broad restrictions across the sector.
“Interventions should be targeted and proportionate, as broad blocks risk undermining competition and the ability of regulated firms to operate effectively in the UK,” Fairless said.
Related: EU proposes ban on 11 crypto platforms in Russia sanctions push
Stablecoin rules remain focus for UK policymakers
The campaign comes amid ongoing efforts by regulators to develop a UK-wide framework for stablecoins.
At the beginning of May, a House of Lords committee examined proposed stablecoin regulations, with lawmakers questioning industry executives on bank-run risks, anti-money laundering controls and the potential impact of stablecoins on traditional banking.
Later that month, the Bank of England said it was reconsidering proposed caps on stablecoin holdings and reserve requirements as it reviewed its framework for pound-denominated stablecoins.
The review comes as regulators seek to support the growth of a domestic stablecoin market while limiting potential risks to bank funding and financial stability, with non-dollar stablecoins currently accounting for only a small fraction of the global market.
Total stablecoin market cap. Source: DefiLlama
In June, a House of Lords committee said certain proposed stablecoin requirements, including reserve and holding rules, could limit the viability of pound-denominated tokens. The committee urged regulators to avoid measures that could inhibit the growth of the sector while finalizing the country's stablecoin framework.
Beyond stablecoins, regulators have also advanced broader digital asset initiatives. In May, the central bank proposed extending operating hours for the country's settlement infrastructure to support tokenized markets, while the Financial Conduct Authority proposed on June 8 allowing certain retail-focused investment funds to allocate up to 10% of their portfolios to crypto exchange-traded products.
What to Watch
AI outlook — possibilities, not facts
Banks may adjust their policies on crypto transactions in response to the campaign and potential regulatory guidance.
Possible · Medium term
Further regulatory clarity on stablecoins will be provided, potentially impacting their market viability.
Very likely · Medium term
The FCA may issue further guidance or rules regarding crypto exchange-traded products and fund allocations.
Likely · Medium term
Open Questions
- What will be the specific responses from banks to the complaints submitted through Stand With Crypto's website?
- How will the campaign's next steps be determined based on bank responses?
- What is the precise definition of 'regulated platforms' in the context of these restrictions?
- What are the specific risk-based approaches banks are expected to implement for crypto-related payments?
