Catenaa, Tuesday, May 13, 2025-British businesses in the crypto sector are facing growing challenges as banks in the UK increasingly deny services, a practice some describe as “debanking,” similar to trends seen in the United States.
A survey of about 80 UK crypto companies revealed that half had been either rejected for business bank accounts or had their accounts closed, with many citing their association with cryptocurrency or blockchain technology as the primary reason.
One notable case involved a UK-registered crypto company that struggled to secure a mortgage due to the nature of the business.
Meanwhile, a Cambridge University spin-out was unable to open a business bank account. In some instances, companies were forced to relocate operations to the European Union or the Gulf in search of more favorable banking environments.
The Financial Conduct Authority (FCA), which regulates the UK’s financial sector, is also considering new rules to restrict retail investors from borrowing to trade in cryptocurrencies, a move aimed at curbing risks associated with volatile assets.
While supporters of crypto argue that the restrictions add to negative sentiment toward the sector, the FCA defends its stance as a consumer protection measure.
UK banks, however, are wary of exposure to the crypto sector due to the high risks involved. The collapse of Silvergate Bank in the U.S. following the implosion of the FTX crypto exchange in late 2022 has raised concerns among financial institutions globally.
As the UK government moves toward introducing crypto regulation, including draft proposals exempting overseas stablecoin issuers from authorization, the growing tension between the crypto sector and financial institutions is setting the stage for a regulatory showdown.
