When Banks Say “No” to Crypto: A Tale of Blocked Payments and Sarcasm 🤦‍♂️

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Imagine this: you’re a proud, upstanding citizen of the United Kingdom, with dreams as big as your crypto wallet. But then, out of nowhere, your bank decides to play the role of the gatekeeper, blocking or delaying your payments to a crypto provider. It’s like trying to buy a coffee, but the barista suddenly turns into a bouncer. 🚪☕

According to a survey by IG Group, which polled 500 UK crypto investors and 2,000 adults, a whopping 40% of users have faced this very issue. Now, if you’re thinking, “Well, that’s not too bad,” let me remind you that 29% of those affected actually complained to their banks. And get this, 35% of them switched lenders. Talk about a dramatic exit! 🚀➡️👋

When the broader sample was asked about banks interfering with crypto transactions, opinions were split. 42% said they were against it, while 33% were all for it. It’s like asking if you prefer pineapple on pizza-everyone has an opinion, and no one’s really right or wrong. 🍕🍍🤷‍♂️

Michael Healy, IG’s UK managing director, put it bluntly: “We’re in a damaging position where millions of people are effectively being locked out of crypto just because of who they bank with. This kind of behavior is at best anti-consumer, at worst anti-competitive-and it’s not backed by the public.” It’s like being told you can’t go to the party because you didn’t wear the right shoes. 🥿🚫🎉

While trading cryptocurrency is totally legal in the UK, funding your accounts can feel like a mission impossible. Crypto companies need to register with the Financial Conduct Authority (FCA) to operate, and only FCA-authorized firms can handle fiat on- and off-ramps in British pounds. It’s like trying to get into a members-only club, but the bouncer keeps changing the dress code. 🕶️🚪…

Some high-street banks, including Chase UK and NatWest, have taken things a step further by restricting or outright blocking payments to crypto exchanges, all under the guise of preventing fraud. It’s like saying you can’t go to the beach because you might drown. 🏖️🌊…

Adding insult to injury, the FCA has also banned retail customers from using borrowed money, including credit cards, to buy digital assets. It’s like telling you that you can’t borrow your neighbor’s lawn mower to mow your lawn, even though you promised to return it. 🌿…)

UK Falling Behind in Global Crypto Race

The banking hurdles for UK crypto users are just the tip of the iceberg. Former Chancellor of the Exchequer and current Coinbase adviser George Osborne has been vocal about the UK’s lagging behind in the crypto race. “What I see makes me anxious. Far from being an early adopter, we have allowed ourselves to be left behind,” he wrote in a Financial Times op-ed. It’s like realizing you’re the last one to get the joke at a comedy show. 😂…

Osborne highlighted the lack of progress on stablecoins, a $288 billion market dominated by the US dollar, with virtually no presence from the British pound. According to CoinGecko, pound-denominated stablecoins account for a mere $616,000 in circulation. It’s like having a tiny slice of cake at a buffet. 🍰…

But fear not, there’s a glimmer of hope. The FCA recently lifted its ban on retail trading of crypto exchange-traded notes (ETNs), effective Oct. 8. The regulator claims this move reflects the maturing of the digital asset sector after years of volatility and a perceived lack of legitimate investment need. It’s like finally getting a seat at the cool kids’ table, but only after everyone else has left the party. 🎉…

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2025-08-20 20:11