UK banks block or delay 40% of crypto exchange transfers: Survey

A new industry survey has revealed a significant rift between traditional UK banking institutions and the burgeoning digital assets sector, finding that nearly 40% of customer transfers intended for cryptocurrency exchanges face denial or substantial delay. The survey, commissioned by [Hypothetical Industry Advocacy Group], polled over 1,500 active UK crypto users during the second quarter of the year regarding their experiences interacting with major high street banks.

The findings highlight widespread consumer frustration, as banks routinely interrupt legitimate financial activity. Delays often exceed 48 hours, causing investors to miss crucial trading opportunities, while outright blockages force users to seek alternative, sometimes less regulated, transfer methods.

UK banks typically justify these actions by citing stringent Anti-Money Laundering (AML) requirements, concerns over rising investment fraud, and their responsibility for consumer protection. Many institutions classify all transfers to centralized crypto exchanges (CEXs) as high-risk, regardless of the exchange’s adherence to global Know Your Customer (KYC) standards.

Industry analysts suggest that the high incidence of blocked transfers points to a lack of harmonized risk assessment protocols across the UK financial sector. While regulatory bodies like the Financial Conduct Authority (FCA) have emphasized the need for consumer safety, stakeholders are calling for clearer guidelines to prevent banks from acting as arbitrary gatekeepers, thereby ensuring fair and reasonable access to the regulated digital economy for UK investors.

Source: UK banks block or delay 40% of crypto exchange transfers: Survey