Almost half of the United Kingdom’s banking institutions oppose cryptocurrency and don’t support digital currencies in any shape or form. In 2023, many of the country’s high street banks blocked payments to and from major cryptocurrency exchanges due to security concerns following the collapse of the FTX exchange.
Recently, NatWest, a British retail bank, announced it will no longer do business with customers who accept payments in Bitcoin and other cryptocurrencies. This was followed by announcements from HSBC that it won’t allow transfers from crypto wallets and won’t permit customers to purchase shares in cryptocurrency firms, such as Coinbase and MicroStrategy.
This protective strategy adopted by banks in the country could be because they are concerned that regulators may fine them for condoning practices perceived as risky for customers. The approach stems from the 2012 recommendations of the Financial Action Task Force, which is a G7 initiative geared toward combating money laundering.
As per the recommendations, each G7 member state is mandated to implement measures that require their banks to scrutinize customers’ transactions for money laundering and terrorist financing. Banks need to use their resources to verify whether each transaction or business activity is safe while facing large fines for non-compliance in their implementation of the framework or wrongdoing.
Most banks view cryptocurrencies as risky assets because they are used for money laundering, are targets for fraud and scams, and their value is extremely unstable in the short term. The UK’s Financial Conduct Authority (FCA) issued a warning to crypto investors that they are at risk of losing all funds due to their involvement with the market. It is rather easier for the banks to directly oppose the asset class than to face the burden of investigating businesses and individuals dealing with crypto.
Which Traditional Banks In The UK Are Crypto-Friendly?
Here is a list of crypto-friendly banks in the UK where crypto users can maintain their banking relationships:
Barclays Banks
While the UK’s second-largest bank has no official crypto policy, they do allow customers to transfer funds from their accounts to be deposited on FCA-approved crypto exchanges. The only limits applied are the standard payment per customer per day restrictions, which is 50,000 pounds when transferring through online banking, and 2,000 pounds via the bank’s mobile app.
Coutts
Coutts is known as the bank of Britain’s elites. If you want to start an account here, you have to have at least 1 million pounds in hand. Unlike other crypto-friendly banks in the country, Coutts imposes no limits when it comes to transferring money to crypto exchanges. However, the bank may review a particular transaction if they are concerned about the transfer, and either approve, reject, or request further information for your security.
Nationwide
Nationwide is yet another crypto-friendly traditional bank that facilitates transfers to just about any cryptocurrency exchange, bar Binance – the world’s largest exchange by trading volume. On the bank’s website, it is mentioned that customers can spend up to 5,000 pounds a day on transfers made to purchase cryptocurrency, and for those with multiple accounts, the limit is applied to each account.
First Direct (HSBC)
First Direct is a subsidiary of HSBC with over 1.5 million customers across the UK. Both banks have the same limits when it comes to transfers to crypto trading platforms. As per First Direct’s policy, there is a 2,000 pound per day limit when transferring funds using a debit card, online banking, or customer contact center. However, there is a total limit of 10,000 pounds in any rolling 30-day period, which is applied per customer and not per bank account. Keep in mind that you cannot purchase cryptocurrency with a First Direct credit card.
Natwest
Natwest is not known for its crypto-friendly approach, but the bank does offer the bare minimum, which is an advantage if you are not a serious trader. They have placed a limit of 1,000 pounds per day and 5,000 in 30 days for any online banking or Faster Payments transfer identified as going to cryptocurrency exchanges. However, the limit is per person and not per account, meaning the limits are universal if you have multiple Natwest accounts.
Royal Bank of Scotland
The Royal Bank of Scotland (RBS) is owned by the Natwest Group, so it imposes the same rules when it comes to crypto-related transactions. However, there is a limit on deposits made to exchanges, and sometimes the bank even blocks such payments. Daily limits are 1,000 pounds per day and 5,000 per month.
Santander
Santander has the largest customer base of any bank in the UK. Although the Spanish bank supports crypto-related transfers, it does impose strict limits. Santander customers can send only 1,000 pounds per transaction and is limited to three per month. This means that you can only transfer a total of 3,000 pounds in any rolling 30-day period.
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