UK Investors Flee Banks as Crypto Policies Tighten
Traditional banks in the United Kingdom (UK) have recently adopted stricter policies concerning the cryptocurrency market, leading to the closure of accounts associated with centralized exchanges and crypto-related businesses.
A report by Recap on October 19 revealed that 38% of UK crypto investors have switched banks in response to these stringent cryptocurrency regulations.
The report found that 38% of investors changed banks due to these policies, while 22% seriously considered doing the same. Some individuals even experienced account suspensions due to large cryptocurrency-related fund transfers, prompting them to switch to more crypto-friendly banks. The global crackdown on the crypto industry, driven by concerns about high-risk investments, fraud, and money laundering, played a significant role in these banking measures. The collapse of FTX, a major crypto trading venue, further pushed banks to enhance security.
In 2023, these banking measures included blocking transactions to and from centralized exchanges, imposing investment limits, and closing accounts of active cryptocurrency traders. These actions have caused frustration among crypto enthusiasts, leading nearly 40% to seek alternative banking providers.
This shift in demand highlights a growing trend for crypto-friendly banking services, especially as passionate crypto users seek greater flexibility. Banks embracing a more crypto-friendly approach may find a growing market for their services.
READ MORE: US Government Misses Out on Bitcoin Boom
Revolut, according to the Recap report, is the preferred fintech option for crypto holders in the UK. It offers unlimited exchange limits and is the only neobank allowing mobile app trading, along with a ‘Crypto Learn and Earn’ program.
Although banks have varied cryptocurrency policies, the consensus is that they offer a more accommodating environment for digital asset transactions, diverse trading options, and investments, which is positively received by crypto investors. The quest for crypto-friendly banks is reshaping the UK financial landscape, and this trend is worth monitoring for its potential impact on the broader financial sector.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
