Stand With Crypto UK, a Coinbase-backed advocacy group, has issued a call to its 286,000 members urging them to file formal complaints with banks. The move comes as numerous UK banks broadly restrict or delay payments to cryptocurrency exchanges, sparking allegations that banks are limiting access to legal crypto transactions.
Mass complaint against banks
Although holding crypto assets is legal in the UK, banks claim to restrict such transfers due to fraud and financial crime risks. Critics counter that, instead of targeted action, these restrictions have been applied across the board, effectively imposing a sweeping block on all customers regardless of their individual risk profiles.
According to data from the UK Cryptoasset Business Council, around 40 percent of domestic crypto transactions in the country are currently either blocked or delayed by banks. Additionally, the proportion of UK adults owning crypto assets has doubled in the last four years, now reaching 8 percent.
The UK government’s official stance is that licensed crypto firms should not face account or transaction restrictions simply because of the sector in which they operate.
Through its “Your Money. Your Choice” campaign, Stand With Crypto UK encourages customers to demand formal responses from their banks regarding these restrictions. The group asserts that most mainstream banks have implemented bans or set limits on transfers even to platforms authorized by the Financial Conduct Authority.
Mini glossary: The Financial Conduct Authority is the UK’s regulatory body overseeing financial markets. Crypto companies must register with or obtain authorization from the FCA to comply with anti-money laundering rules.
Recent reports and bank policies
Under the Payment Services Regulations 2017, banks are required to process payments as long as the account conditions are met. However, the “Locked Out” report from January 2026 reveals that 8 out of 10 crypto platforms have seen an uptick in rejected bank transfers in the last 12 months. One exchange even reported that banks turned down up to £1 million worth of customer transactions within a single year.
Information shared by campaigners shows that Chase UK, Starling, TSB, Virgin Money, and Metro Bank have completely halted both wire and card payments to crypto exchanges. Meanwhile, Barclays, HSBC, Nationwide, and Monzo allow transfers but have imposed stringent limits on the amounts customers can send.
Parallels with US controversy
This dispute in the UK draws comparisons to Operation Choke Point 2.0, a controversial process in the US. There, crypto advocates accused federal banking regulators during the Biden administration of informally pressuring banks to distance themselves from digital asset companies.
In a February 2025 US House Financial Services Committee hearing, subcommittee chair Dan Meuser stated that the FDIC attempted to deter banks from serving digital asset businesses, employees, and customers by threatening formal regulatory action. In the UK, however, the perceived pressure is said to come directly from the banks, not from regulators.
Katie Harries, Coinbase’s Head of Policy for Europe, argued that these bank restrictions run counter to the UK government’s ambition to establish the nation as a global digital asset hub. Harries emphasized that retail investor participation is critical to this vision, warning that the banks’ narrowing of fiat-to-crypto channels undermines progress.
Advocacy groups also point out that some banks have built in-house digital asset teams, leading to questions as to whether restrictions on individual customers are genuinely about security or are aimed at undermining competing services for competitive advantage.
