The Great Wall of High Street: Why UK Banks are Still Blocking Crypto 🧱🏦
Despite the UK’s goal to become a "global crypto hub," 2026 has seen a surge in banks freezing accounts and blocking transfers. Even with institutional ETFs and new laws, traditional finance is still digging in its heels. $ASTER
The 2026 Friction Point 🔍
Why is this still happening? It comes down to three main pressures:
The "Scam Shield": To avoid liability for fraud, many banks use "blanket blocks" on crypto transfers rather than assessing individual risks.
New Reporting Rules: The Crypto-Asset Reporting Framework (CARF) launched in January 2026. Banks are tightening compliance filters during this transition.
Regulatory Limbo: While new crypto laws were passed this month, the full regime won't take effect until October 2027.
The 2026 Bank Scorecard 📋
✅ Supportive: Revolut & Monzo
Generally allow transfers to FCA-registered exchanges.
Revolut offers direct in-app trading and staking.
⚠️ Restrictive: HSBC, NatWest & Santander
Payments are often capped (typically £2,500 per month).
Expect frequent "security holds" and verification calls. $DUSK
❌ Hostile: Chase UK & Starling
Maintain near-total blocks on payments to crypto platforms.
Often cite "customer protection" as the reason for outright bans.
Quick Fixes 💡
Use a Buffer: Move funds from your main bank to a digital-first account (Revolut/Monzo) before sending to an exchange.
Stick to the FCA: Only use FCA-registered platforms like Coinbase or Kraken to minimize red flags.
Try Debit Cards: If a bank transfer fails, a debit card payment might slip through, though you'll likely pay higher fees. $GIGGLE
The Bottom Line: Until the 2027 regulations bridge the gap, the "crypto-friendly" label remains a rarity in UK banking.