Nine in ten British banks block crypto payments

Nine out of ten of the largest British retail banks block or limit payments to crypto exchanges. This remains the case even after the UK financial regulator, the FCA, introduces a full regulatory framework for cryptoassets in October 2027. The FCA says it hopes banks will voluntarily drop their restrictions once there is greater regulatory clarity, but the regulator does not oblige them to do so. Banks may decide for themselves how much risk they are willing to take. The Banker reports.

In brief:

• Nine of the ten largest British retail banks currently block or restrict payments to crypto exchanges.
• The FCA does not oblige banks to lift these restrictions, including after the introduction of the new crypto framework in October 2027.
• The FCA framework covers, among other things, crypto exchanges, stablecoins, custody and staking. Licence applications open on 30 September 2026.

Banks maintain restrictions

The UK government likes to present the country as a future hub for digital assets, but in practice consumers at most major banks encounter restrictions as soon as they want to transfer money to a crypto exchange. Nine of the ten largest retail banks currently impose an outright ban or a limit on such payments.

The FCA has confirmed that it cannot legally force banks to do this. Even after the comprehensive crypto regulatory framework comes into force, it remains up to the banks themselves to decide whether they want to process this type of payment. The regulator expresses the hope that greater regulatory clarity will lower the threshold for banks, but there are no guarantees.

FCA opens licensing process in September 2026

At the same time, the FCA has published guidance on the scope of the future regulatory framework for cryptoassets. The regime enters into force on 25 October 2027. Companies that want to apply for a licence can do so from 30 September 2026.

The framework focuses on a broad range of services: the issuance of so-called qualifying stablecoins, crypto trading platforms, the trading and arranging of cryptoassets, custody and staking. The FCA says it will hold additional consultation in October based on recent legislative changes.

The tension between the UK government’s ambition and the cautious behaviour of banks will therefore remain for the time being. As long as banks are not required to process crypto payments, little will change in practice for many consumers, even if formal supervision is in place.