UK banks block or delay around 40% of payments to crypto platforms, exchange survey finds

A recent survey conducted by a major cryptocurrency exchange operating within the UK market reveals significant friction between traditional banking institutions and the digital asset sector. The findings indicate that UK banks are either blocking entirely or significantly delaying approximately 40% of customer payments intended for crypto trading platforms. This high rate of intervention highlights the ongoing tension between established financial infrastructure and the rapidly evolving crypto economy.

The survey, which analyzed thousands of transaction attempts over a six-month period, suggests that these measures are predominantly implemented under the guise of enhanced fraud prevention and adherence to stringent Anti-Money Laundering (AML) regulations. While banks maintain they are protecting customers from high-risk scams commonly associated with certain crypto transfers, industry advocates argue that these sweeping measures constitute de facto discrimination against legitimate financial activity.

These widespread blocks and delays often require customers to contact their bank directly, providing proof of the transaction’s legitimacy and intent, leading to severe operational friction and user frustration. The exchange noted that the high rate of rejection or delay is disproportionate compared to other forms of international or high-value transfers. This lack of standardized guidance across major UK banks creates an unpredictable environment for both consumers and exchanges, hindering broader adoption of digital assets within the country. The data underscores the necessity for clearer regulatory frameworks that balance consumer protection with facilitating legitimate access to the crypto market.

Source: UK banks block or delay around 40% of payments to crypto platforms, exchange survey finds