UK Banks Hit by 10,000 Complaints Over Crypto Restrictions

More than 10,000 complaints about bank restrictions on cryptocurrency purchases were filed across the U.K. over a 90-day period between May and August, according to the advocacy group Stand With Crypto (SWC). The figures cast doubt on the country's ambition to become a global crypto hub.

The 10,092 complaints were submitted through an online tool by 9,800 individuals, covering all 650 parliamentary constituencies. Lloyds Banking Group, which includes Halifax and Bank of Scotland, drew the most with 2,297, or 23% of the total. Barclays followed with 1,569 and NatWest Group with 1,278.

A self-selected sample

The data needs qualification. SWC collected complaints from people who chose to use its tool, so the poll is not a representative survey and is not adjusted for each bank's share of U.K. current accounts. Higher counts therefore do not necessarily mean higher complaint rates.

Policies and experience diverge

The report also points to a gap between published rules and customer experience. According to SWC's review of bank websites as of Aug. 28, Lloyds has no published policy restricting crypto-related transfers. Revolut, which allows crypto purchases in its app, still appeared among the institutions receiving complaints.

Some lenders do state limits. Barclays caps crypto transfers at £2,500 per transaction and £10,000 over 30 days, and NatWest and Santander also publish transaction and monthly limits. Chase, Starling, TSB, Metro Bank and Virgin Money were identified as banning crypto transactions altogether. Banks with published limits accounted for 61% of complaints, those without published restrictions 28%, and those with outright bans just under 10%.

Katie Harries, Coinbase's head of European policy, said a country cannot credibly invite innovators in while letting banks lock consumers out. She cited research from the U.K. Cryptoasset Business Council indicating that 40% of attempted transfers to FCA-registered exchanges were blocked or delayed over the previous 12 months, and that 70% of exchanges found banking conditions more hostile than a year earlier.

Banks have legitimate reasons to scrutinize crypto transfers given fraud, scams and money laundering risks. SWC argues, however, that blanket restrictions go beyond proportionate risk management. It wants banks to publish clear explanations of their restrictions and give customers meaningful ways to challenge blocked transfers, while the government and the Financial Conduct Authority continue preparing a broader crypto regulatory regime.