Thomas Daniels
Nearly half of UK cryptocurrency investors report their banks either blocked or delayed payments to crypto providers—raising alarm that Britain may be falling behind international peers in the digital asset space.
A new IG Group study—surveying 500 active crypto investors and a broader panel of 2,000 UK adults—found that 40 percent of crypto users experienced interference from banks during fiat transfers to exchanges. Of those affected, 29 percent filed formal complaints, while 35 percent switched to different banks permitting such transactions. Additionally, when the broader cohort weighed in, 42 percent opposed banks intervening in crypto payments, compared with 33 percent who supported such actions.
“This puts millions effectively locked out of crypto, depending solely on their banking provider,” said Michael Healy, IG’s UK managing director. “Bank restrictions on crypto are at best anti‑consumer and, at worst, anti‑competitive—and clearly not endorsed by the public.”
While cryptocurrency trading remains legal in the UK, operational roadblocks persist. Only Financial Conduct Authority–registered virtual asset service providers are permitted to offer fiat on‑ and off‑ramps in pounds sterling. Meanwhile, high‑street banks such as Chase UK, NatWest, and Starling have either restricted or outright blocked payments to crypto platforms, citing fraud prevention as justification. The FCA has also prohibited retail investors from funding digital asset purchases with borrowed funds—including credit cards—further limiting access.
These banking obstacles come amid concerns that the UK is losing its competitive edge in digital finance. George Osborne, former Chancellor and current Coinbase adviser, has warned that the UK risks falling behind global rivals. He specifically noted the negligible uptake of pound‑denominated stablecoins—just $616,000 in circulation within a $288 billion global stablecoin market.
Nonetheless, regulatory easing is beginning to emerge. Starting 8 October, the FCA will lift its ban on retail trading of crypto exchange‑traded notes (ETNs)—a move that policymakers say reflects the sector’s growing maturity.
