Bitcoin Policy UK has submitted evidence to a parliamentary inquiry, revealing that British banks continue to block or delay roughly 40% of bank-to-exchange transfers. Major institutions like Virgin Money and Chase UK block transactions outright, while Barclays and HSBC impose strict caps. The policy group argues that regulatory treatment conflating bitcoin with other cryptoassets drives these blanket restrictions, and calls for reforms including mandatory appeals processes.
UK bank bitcoin restrictions
- ▪Virgin Money, Metro Bank, Starling Bank, TSB, and Chase UK block transfers and card payments to bitcoin exchanges outright.
- ▪Roughly 40% of bank-to-exchange transfers in the United Kingdom are currently blocked or delayed, according to data submitted by Bitcoin Policy UK.
- ▪British banks Barclays and HSBC cap transfers to bitcoin exchanges at £2,500 per transaction, according to Bitcoin Policy UK.
Bitcoin Policy UK parliamentary submission
- ▪Bitcoin Policy UK submitted evidence to the Crypto and Digital Assets All-Party Parliamentary Group's inquiry into banking access on August 21, 2026.
- ▪Bitcoin Policy UK stated in its August 2026 parliamentary submission that no improvements have been made over the past three years in how British banks treat bitcoin activity.
Bitcoin regulatory treatment disparity
- ▪United Kingdom policy treats all cryptocurrency assets uniformly, meaning bitcoin is subjected to rules written for unbacked tokens and issuer-dependent stablecoins.
- ▪The British government has advised banks since 2023 to assess cryptocurrency clients case-by-case, but Bitcoin Policy UK states this practice has not been followed.
Banking access survey data
- ▪A January 2025 survey by Startup Coalition, the UK Cryptoasset Business Council, and Global Digital Finance found half of canvassed United Kingdom fintech and crypto firms had been refused a bank account.
- ▪The January 2025 survey of United Kingdom fintech and crypto firms found that only 14% had opened and kept an account with one of the country's nine largest banks.
- ▪An August 2025 survey by IG Group found that 40% of active cryptocurrency investors had a payment blocked or delayed by their own bank.
Policy recommendations for banks
- ▪Bitcoin Policy UK requested confirmation that Financial Conduct Authority registration can serve as a risk basis for banks, similar to the regulatory framework in Hong Kong.
- ▪Bitcoin Policy UK requested the publication of a periodic measure tracking the level of banking restrictions on cryptocurrency activities in the United Kingdom.
- ▪Bitcoin Policy UK requested a regulatory statement confirming that bitcoin activity through a Financial Conduct Authority-registered exchange should not face blanket restrictions.
Appeals process proposals
- ▪Bitcoin Policy UK proposed that British banks establish a formal appeals route for customers whose bitcoin-related activities are rejected.
- ▪Bitcoin Policy UK proposed a regulatory duty requiring British banks to provide specific reasons for rejecting bitcoin-related transactions.
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