Crypto platforms operating in the United Kingdom are facing growing resistance from the banking sector, with new data showing widespread disruption to everyday transactions. A recent industry survey reveals that almost 40% of payments to crypto exchanges are being blocked or delayed, intensifying concerns that UK banks are quietly “debanking” the digital asset industry.
Debanking Pressure Intensifies Across the UK
The findings come from a new report by the UK Cryptoasset Business Council (UKCBC) titled “Locked Out: Debanking the UK’s Digital Asset Economy.” According to the survey, banks’ actions are increasingly at odds with the UK government’s stated ambition to make Britain “the top destination for cryptoasset firms looking to grow.”
UKCBC surveyed ten of the largest crypto platforms operating in the country, including Coinbase, Kraken, Gemini, OKX, Uphold, Bitpanda, Luno, Zumo, Wirex, and Xapo Bank. Together, these firms serve millions of UK users and have processed hundreds of billions of pounds in transaction volume.
Billions Lost to Blocked Transfers
One exchange told UKCBC that it experienced a £1 billion ($1.2 billion) decline in transaction volume over the past year, driven solely by UK banks rejecting card payments and bank transfers. Across the survey, 80% of exchanges reported rising customer friction due to blocked, delayed, or capped transfers during the last 12 months.
More concerning for the industry, 70% of respondents described the UK banking environment as becoming openly hostile toward crypto businesses. All surveyed platforms said banks rarely provide clear explanations when blocking transactions or restricting accounts, leaving both exchanges and customers in the dark
Even Fintechs Aren’t Immune
The report also highlights a contradiction in the UK payments landscape. While fintech giants Wise and Revolut have expanded into crypto-related services themselves, they still block, delay, or limit transfers to other crypto platforms. UKCBC argues this creates competitive distortions, where access depends more on institutional relationships than risk-based assessments.
According to the council, the debanking trend is undermining domestic innovation and pushing crypto businesses to consider relocating abroad. The report contrasts the UK’s tightening environment with jurisdictions like the United States, where policymakers are working to clarify crypto rules and better integrate traditional finance with digital assets.
UKCBC Calls for Regulatory Intervention
To address the growing friction, UKCBC issued a set of recommendations aimed at regulators and policymakers. The council urged the Financial Conduct Authority (FCA) to require banks to adopt a risk-based framework that recognizes differences between compliant, regulated exchanges and higher-risk entities.
UKCBC also called on regulators to discourage banks from treating all retail crypto users as uniformly “high risk.” The report recommends mandating the removal of unnecessary frictions for exchanges already registered with the FCA and discouraging practices that could be considered anti-competitive.
Another proposal involves creating a formal forum for ongoing dialogue between regulators, banks, and crypto platforms. UKCBC believes structured engagement would help address fraud concerns without resorting to blanket restrictions that punish legitimate users.
A Profitable Banking Sector Tightens the Screws
The timing of the report is notable. UK banks are enjoying a period of rising profitability, driven by higher interest rates and aggressive cost controls. According to recent reporting, NatWest is considering raising its 2027 profit target, while Barclays and HSBC may also lift projections. European banking shares have more than doubled in value since early 2024, adding to industry frustration that crypto firms are being sidelined despite the sector’s strong financial health.
For UK crypto platforms, the message is increasingly clear: regulatory ambition alone is not enough. Without cooperation from banks, the UK risks falling behind as capital, innovation, and talent look elsewhere.
