More than 10,000 complaints about bank restrictions on crypto transactions were submitted across the U.K. during a 90-day period, a finding that puts the country’s stated ambition to become a global cryptocurrency hub in direct tension with the way many major banks handle customer transfers.
Stand With Crypto said 10,092 complaints were filed between May and August through its online tool by 9,800 individuals. The group said those submissions came from customers in all 650 parliamentary constituencies across the U.K.
Government support and banking barriers are moving in opposite directions
The U.K. first set out support for the crypto industry in 2023, when Rishi Sunak, who later became prime minister, was serving as chancellor under the Conservative government. That position was repeated less than a year ago by Economic Secretary to the Treasury Lucy Rigby under a Labour administration.
Stand With Crypto said blanket bans, hard limits and unclear bank policies can block access to regulated exchanges and cut against Britain’s effort to position itself as a global crypto hub.
In an email interview, Coinbase Head of European Policy Katie Harries said, 「A country cannot credibly invite innovators in while allowing banks to lock consumers out.」 She added, 「This will undoubtedly dampen the growth of the U.K.’s digital asset sector, with ramifications for associate investment here.」
Lloyds, Barclays and NatWest received the most complaints
According to the report, Lloyds Banking Group received the highest number of complaints at 2,297, equal to 23% of the total. The group includes Halifax and Bank of Scotland. Barclays followed with 1,569 complaints, while NatWest Group received 1,278.
The report also attached clear caveats to those figures. Stand With Crypto gathered submissions from people who chose to use its online tool. It was not a representative survey of bank customers, and the data was not adjusted for each bank’s share of U.K. checking accounts.
That means a higher complaint total does not necessarily indicate a higher complaint rate.
Even FCA-registered venues face transfer friction
The findings point to a possible contradiction in the U.K.’s digital asset approach. While the government and the Financial Conduct Authority are preparing a broader regulatory regime designed to attract crypto businesses, banking restrictions can still stop consumers from reaching even regulated venues.
Harries said, 「Bank transfers represent a crucial on-ramp to add money to their account on our platform. We are an FCA-registered crypto asset business, but are subject to the same blanket restrictions as the wider crypto asset sector.」
She also cited research from the U.K. Cryptoasset Business Council showing that 40% of attempted transfers to FCA-registered crypto exchanges were blocked or delayed over the previous 12 months.
According to Harries, 「Most exchanges said customer friction had increased, and 70% said banking conditions were more hostile than a year earlier.」
Published policies do not always match customer experience
One of the report’s more revealing points was the gap between what banks publicly say about crypto restrictions and what customers say happens in practice.
Based on Stand With Crypto’s review of bank websites as of Aug. 28, Lloyds had no published policy restricting crypto-related transfers.
Revolut, a digital bank that allows crypto purchases through its app, also appeared among the institutions that received complaints.
Some banks do publish explicit limits. Barclays caps crypto transfers at 2,500 pounds per transaction and 10,000 pounds over 30 days. NatWest and Santander also list transaction and monthly limits. Chase, Starling, TSB, Metro Bank and Virgin Money were identified as prohibiting crypto transactions altogether.
Banks with published limits accounted for 61% of complaints. Institutions without published restrictions accounted for 28%. Banks with outright bans made up just under 10%.
Stand With Crypto wants clearer rules and case-by-case reviews
Stand With Crypto said those differences raise questions about whether financial firms are giving customers clear enough information. A customer trying to switch banks in search of reliable access to crypto transactions may struggle to tell which institution will actually behave as expected.
The report noted that banks have legitimate reasons to scrutinize crypto transfers because of fraud, scams and money laundering risks.
Even so, Stand With Crypto argued that blanket restrictions go beyond proportionate risk management and conflict with the expectation that financial crime controls should assess individual customers and individual transactions.
The group proposed that banks publish clear explanations of their restrictions and provide meaningful ways for customers to challenge blocked transfers.
Harries said, 「Banks shouldn’t be allowed to apply blanket restrictions across a whole industry. They should take a case-by-case approach, not choke off the entire sector.」
