Catenaa, Tuesday, August 26, 2025-British banks are drawing criticism for blocking millions of customers from accessing digital assets, as blanket bans on crypto transactions frustrate investors and undermine the UK’s push to become a global hub for digital finance.
New research from IG shows that two in five UK crypto investors have had payments delayed or rejected by their banks, amounting to millions of people facing barriers to buying digital assets.
One of the country’s largest banks recently imposed a full ban on crypto-related payments, citing fraud prevention, a justification critics call paternalistic and anti-competitive.
Public sentiment is turning against the restrictions. According to IG, more UK adults oppose banks blocking crypto transactions (42%) than support the practice (33%).
Many investors now see digital assets as part of diversified, long-term portfolios, but banks’ blanket bans are forcing some to switch institutions, file complaints or alter payment behavior to participate in the market.
Critics argue the lack of a consistent framework leaves customers subject to arbitrary decisions that differ from bank to bank.
While global peers have shifted from blocking crypto to selling digital products themselves, UK banks have been slower to adapt.
Analysts warn that unless policies change, the UK’s ambition to lead in digital assets could be undermined by its own banking sector.
