UK banks are blocking or delaying 40% of transfers to cryptocurrency exchanges, according to a report published in London in early 2025. The survey, conducted by the UK Crypto-Business Council (UKCBC), reviewed activity at the ten largest centralized exchanges in the United Kingdom and found that eight of those platforms reported a rise in payment issues over the past year.
Overview of the UK Crypto Transfer Crisis
The UKCBC positions this finding as more than temporary disruption: the council says the 40% blockage rate creates a structural barrier to market entry for crypto businesses. The report combines transaction logs and thousands of customer service records to present a picture of systemic friction between banks and exchanges. That strain raises questions about consumer access and the United Kingdom’s competitiveness as a fintech hub.
Key Findings from the UKCBC Report
The survey was focused on the ten largest centralized exchanges operating in the UK, and it found that eight of those exchanges experienced noticeable increases in payment problems. Not a single exchange reported a decrease in banking obstacles over the review period, according to the UKCBC. The council’s methodology relied on transaction logs and customer support tickets to quantify how often payments were blocked or delayed.
How Banks Are Blocking Crypto Transfers
Banking restrictions typically appear in a few clear forms, which together create meaningful friction for users and businesses. Payments are sometimes blocked outright before funds reach the exchange, and transfers that do proceed can be held for several business days. The report points to major high-street banks as implicated parties, while avoiding naming specific institutions to emphasise the systemic nature of the problem.
Regulatory and Compliance Justifications
Banks commonly point to regulatory compliance and anti-fraud measures, including AML and KYC requirements, as the justification for restrictive behaviour. The UKCBC argues these rules are being applied inconsistently and that, in practice, compliance is sometimes used as a pretext to stifle competition. The Financial Conduct Authority’s framework is part of the regulatory backdrop; ongoing consultations may affect how firms and banks interpret their obligations, as discussed in the FCA consultation.
Impact on Consumers and Businesses
For consumers, blocked or delayed payments can mean missed market opportunities and reduced access to exchanges when speed matters. SMEs in the crypto sector report operational paralysis when banking services are unreliable, affecting payroll and supplier payments. The report also notes that this environment can push activity to jurisdictions with clearer or more favourable banking relationships for crypto firms.
Potential Solutions and Industry Responses
The UKCBC does not stop at diagnosis: the council proposes a formal dialogue between banks, regulators and crypto businesses to align on risk and compliance expectations. It also calls for clearer regulatory guidelines that would reduce ambiguity in bank decision-making. Technical approaches—such as dedicated IBANs, whitelists and improved monitoring—and the growing role of specialised payment providers are listed as operational fixes the industry is already pursuing.
Expert Analysis and Future Outlook
Analysts quoted in the report view the situation as a systemic challenge for innovation and consumer choice when banks act as gatekeepers to payment rails. The 40% blockage metric is framed as a barrier to market entry rather than a series of isolated incidents. The council recommends collaborative work to balance legitimate risk controls with the need to keep regulated crypto firms connected to banking services, and it highlights industry efforts towards standardised practices and clearer rules such as the discussion around mandatory licensing.
Why this matters
If you run mining hardware or otherwise use exchanges, blocked or delayed fiat transfers make it harder to move funds quickly between banks and trading platforms, which reduces operational flexibility. Even if you mine and hold coins rather than trade frequently, restricted access to exchanges can complicate cashing out or managing costs tied to operations. At scale, persistent banking friction can raise costs for services you rely on, and for smaller operators it can become a barrier to doing business.
What to do?
Practical steps for miners in Russia with one to a thousand devices are straightforward and focused on resilience. First, keep alternative payout and funding methods available: maintain accounts with more than one payments provider and consider specialised EMIs or PSPs where available; second, document transactions and be ready to provide KYC/AML information quickly to reduce holds; third, plan cashflow with possible delays in mind, holding a buffer to cover short-term needs if transfers are blocked or delayed.
- Keep a secondary payment route (different bank or payment provider) to avoid single points of failure.
- Keep KYC documents organised and handy to respond to requests promptly.
- Maintain a cash buffer equivalent to a few days of operating expenses to ride out delays.
FAQs
Which UK banks are blocking crypto transfers?
The UKCBC report did not name individual banks, focusing instead on systemic patterns. However, the council notes that customer reports frequently reference major high-street banks and building societies, and the problem appears to be widespread rather than confined to a single institution.
Is it illegal for banks to block these payments?
No. Banks operate under their own terms of service and risk management frameworks and generally have the legal right to refuse or delay transactions they consider high risk, provided they do not engage in unlawful discrimination. The report frames the issue as a regulatory and commercial tension rather than an outright legal violation.
What can I do if my bank blocks a transfer to a crypto exchange?
The report suggests contacting your bank to request a specific reason and attempting alternative payment methods such as debit card payments or specialised payment providers. Some users change to banks or challenger services perceived as more crypto-friendly; keeping extra options reduces dependence on one provider.
Are there regulations proposed to fix this?
As of early 2025, the report says no specific legislation directly addresses this banking friction, but industry dialogue and broader regulatory discussions about the UK’s crypto regime are ongoing. Industry bodies like the UKCBC are advocating for clearer guidelines to standardise bank interactions with regulated crypto firms.
