Bitcoin Policy UK has criticized leading British banks for maintaining widespread restrictions on lawful bitcoin transactions, arguing that progress on access to financial services for the sector has stalled over the past three years.
Bitcoin Policy UK urges Parliament to act as 40% of crypto transfers blocked
Evidence submitted to Parliament
The organization stated on Friday that it presented evidence to the Crypto and Digital Assets All-Party Parliamentary Group’s (APPG) inquiry into banking access. This submission reviewed industry conditions since 2023 and found that blanket policies still dominate, despite government intentions to move toward case-by-case assessments for digital asset clients.
Current UK policy treats all digital assets similarly, making no meaningful distinction between bitcoin, unbacked tokens, or issuer-dependent stablecoins. As a result, bitcoin activity is often restricted under regulations targeting riskier cryptoassets.
Bitcoin Policy UK said that the government’s recommendations to stop sector-wide banking restrictions have not been adequately implemented by financial institutions. The group described a growing gap between policy and practice as the country prepares to fully enforce its cryptoasset regulatory regime by 2027.
Roughly 40% of bank-to-exchange transfers in the UK are currently blocked or delayed, according to evidence submitted to Parliament. Almost three years after initial concerns were raised with the City Minister, Bitcoin Policy UK said the situation has not improved.
Banks and investor impact
Bitcoin Policy UK singled out major banks such as Virgin Money, Metro Bank, Starling Bank, TSB, and Chase UK for blocking transfers and card payments to crypto exchanges outright. Barclays and HSBC, meanwhile, impose a limit of £2,500 ($3,400) per transfer.
According to the group, 80% of cryptocurrency exchanges said restrictions had increased over the past year, and none reported seeing any relaxation. An IG Group survey conducted in August 2025 found that 40% of UK crypto investors had experienced payments blocked or delayed by their own banks.
A joint survey from January 2025 by Startup Coalition, the UK Cryptoasset Business Council, and Global Digital Finance found that half of UK fintech and crypto firms surveyed were either denied bank accounts or had theirs closed. Only 14% of respondents had successfully opened and maintained an account with one of the country’s nine major banks, primarily affecting UK-based businesses.
Bitcoin Policy UK called on banks to provide clear reasons for refusing transactions linked to bitcoin and advocated for an appeals process. The evidence also requested a regulatory statement confirming that bitcoin activity through FCA-registered exchanges should not face blanket bans, and for regular publication of restriction levels.
Future outlook and market dynamics
As the UK aims to strengthen its status in the digital asset space, government officials maintain that a robust regulatory approach can allow the country to compete internationally. City Minister Lucy Rigby stated in December that Britain can rival the United States in becoming a major cryptoasset hub.
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