A significant share of UK consumers face barriers when moving money from bank accounts to crypto exchanges, according to a new survey by the UK Cryptoasset Business Council (UKCBC). The report found that roughly 40% of attempted transfers are blocked, delayed or refused by banks, even when customers are using regulated platforms. The findings underscore growing tensions between traditional banks and the digital asset sector as crypto adoption expands.
The survey, titled Locked Out: Debanking the UK’s Digital Asset Economy, is based on responses from 10 of the country’s largest centralized exchanges. Collectively, these firms serve millions of users and process hundreds of billions of pounds in transactions annually. Eight out of 10 exchanges reported an increase over the past year in customers encountering blocked or restricted transfers, while none reported any improvement.
Banking Friction Challenges UK Crypto Ambitions
According to UKCBC estimates, blanket restrictions imposed by major high-street banks account for most of the disrupted transactions. One UK-founded exchange cited nearly £1 billion in declined transfers over the past year, largely due to card payment and open-banking rejections. The pattern extends across both traditional banks and some challenger institutions, with limits often applied uniformly regardless of a platform’s regulatory status.
Industry participants argue that such policies undermine the UK’s stated goal of becoming a global hub for digital assets. While banks point to fraud prevention as a justification, exchanges say the approach lacks nuance and fails to distinguish between higher-risk platforms and those registered with the Financial Conduct Authority. The result, according to the report, is reduced consumer access and slower growth for compliant businesses.
Calls for Risk-Based Reform and Transparency
The report also highlights a lack of transparency, with all surveyed exchanges stating that banks rarely provide clear explanations for blocked payments. This opacity leaves both businesses and customers uncertain about compliance expectations. Qualitative feedback suggests frustration is widespread, with some exchanges describing banking restrictions as the single largest obstacle to launching new products in the UK.
UKCBC is urging regulators and policymakers to intervene by discouraging blanket bans and encouraging more granular, risk-based frameworks. The group argues that clearer standards and constructive dialogue between banks and crypto firms are essential to prevent innovation from shifting overseas. As regulatory clarity improves globally, the survey suggests that unresolved banking frictions could leave the UK at a competitive disadvantage.
