UK Banks Are Blocking Crypto Transfers — And Now Customers Are Fighting Back

TLDR

• Stand With Crypto UK, backed by Coinbase, has launched a campaign urging 286,000 members to file complaints against banks blocking crypto transfers
• UK banks block or delay around 40% of domestic crypto transactions, according to FCA data
• One exchange lost nearly £1 billion in declined transactions in a single year due to bank rejections
• Banks including Chase UK, Starling, TSB, and others impose complete blocks or hard transfer caps on crypto payments
• The UK government has stated it does not expect FCA-authorized crypto firms to face banking restrictions

Stand With Crypto UK has launched a formal campaign pushing back against British banks that block customers from sending money to cryptocurrency exchanges. The Coinbase-backed group is urging its 286,000 members to file complaints through a tool on its website that generates letters to banks.

The campaign is based on data from the UK Cryptoassets Business Council’s “Locked Out” report, published in January 2026. That report surveyed ten exchanges including Coinbase, Kraken, OKX, and Gemini.

Banks Are Blocking Billions in Crypto Transfers

According to the report, UK banks block or delay around 40% of all domestic crypto transactions. Over the past year, 80% of surveyed exchanges reported a rise in blocked transfers.

One platform alone recorded nearly £1 billion in rejected transactions in a single year. A separate survey by trading platform IG found that two in five UK crypto investors had a payment blocked or delayed by their bank.

The restrictions fall into two categories. Complete blocks are applied by Chase UK, Starling, TSB, Virgin Money, and Metro Bank. Hard transfer caps are set by Barclays, HSBC, Nationwide, NatWest, Santander, and Monzo.

These restrictions apply to all customers, regardless of individual risk profiles. Advocates say this is a blanket approach that does not align with how payment rules are supposed to work.

Government Says Banks Should Treat Crypto Firms Fairly

The UK government has taken a clear position. In January 2026, HM Treasury stated it does not expect FCA-authorized firms to face transaction restrictions from banking providers.

Under the Payment Services Regulations 2017, banks are required to execute payments that meet account conditions. Stand With Crypto UK says the blanket bans breach these rules.

Around 8% of UK adults currently hold crypto assets, according to FCA research. Advocates argue that blocking retail access runs counter to the government’s stated goal of making the UK a global digital assets hub.

Adriana Ennab, director at Stand With Crypto UK, said people are being blocked from a legal asset class due to sector-wide bank policies. Coinbase’s Katie Harries called the banking restrictions a blockage on the “crucial on-ramp” from regular money into crypto.

The FCA proposed on June 8 allowing certain retail investment funds to allocate up to 10% of their portfolios to crypto exchange-traded products, a sign that regulators are moving toward broader access rather than restriction.

Stand With Crypto says responses from banks to member complaints will shape the campaign’s next steps.

The post UK Banks Are Blocking Crypto Transfers — And Now Customers Are Fighting Back appeared first on CoinCentral.