The British banking sector is taking a stand against cyber-crime by preventing customers from making cash transfers to crypto exchanges.
Fraudsters are also using crypto exchanges to transfer and convert victims’ money into untraceable cryptocurrencies.
The FCA recently reported that UK consumers had lost more than £60 million due to social media investment scams in the past year.
In June (2021), the Financial Conduct Authority (FCA) warned that it would be banning Binance Markets Ltd from operating in the UK. Since the announcement, many UK banks have made the decision to stop customers from making payments to several crypto trading platforms.
Banks claim that trading platforms such as Binance, Kraken, Kucoin and Coinbase do not perform adequate security checks to prevent criminals from using said platforms to launder money.
Kraken and Binance have refuted the claims made by UK banks, saying that they take the responsibility of protecting users from fraud very seriously.
The number of UK banks banning their customers from buying cryptocurrencies is increasing, with the likes of Barclays, Monzo and TSB being the latest to take a stand.
I have a Coinbase, Binance and Kraken account, so I put this to the test.
I transferred funds from my personal Barclays account to Kraken and had no problems, my account was funded successfully, and I was able to withdraw back to my account without any issues. Halifax, on the other hand, blocked me from moving money to Coinbase and Binance, so did Natwest.
What UK banks have banned crypto buying, and what banks allow it?
Let’s take a look at some of the UK banks preventing customers from buying, selling or even receiving cryptocurrencies from crypto biggies Kraken, Binance and Coinbase.
One thing to note is that banks will not involve themselves if you are buying cryptocurrencies from FCA regulated companies such as eToro.
eToro is considered safe because its UK arm is regulated by top-tier financial authorities and it is a well-known fintech company.
UK Banks:
- Natwest
- Barclays
- TSB
- Monzo
- Starling Bank
- Lloyds Bank / Halifax
- HSBC
- Santander
- Metro Bank
- Nationwide
- Tesco Bank
- Virgin Money
Natwest
Business Banking: Prohibited
Personal Banking: Under Review, Binance Prohibited
Natwest will not accept and will terminate its business relationship with any UK business receiving or thinking of accepting crypto as a form of payment. They have also warned personal banking customers that they will conduct extra financial crime checks on those who want to dabble in cryptocurrencies. Binance transfers have been strictly prohibited.
Barclays
Business Banking: Under Review
Personal Banking: Under Review
Although Barclays has begun taking measures to ban crypto buying, it seems they are currently only blocking money transfers to some exchanges including Binance and SwissBorg. Barclays were in business with Coinbase until 2019 but ended the working relationship due to money laundering concerns.
TSB
Business Banking: Prohibited
Personal Banking: Prohibited
TSB recently announced plans to ban all 5 million customers from transferring payments to all crypto exchanges, including Binance and Kraken.
Monzo
Business Banking: Prohibited
Personal Banking: Accepted
Monzo has changed its stance on crypto with the bank now saying they are crypto-friendly.
From time to time Monzo may block a small number of transactions based on risk.
Starling Bank
Business Banking: Under Review
Personal Banking: Under Review
Starling Bank initially decided to suspend all payments to crypto exchanges; however, the digital bank has said it will resume cryptocurrency exchange transfers on June 23 2021, after a rigorous enhanced payment review.
Lloyds Bank
Business Banking: Prohibited
Personal Banking: Under Review
Lloyds bank placed a ban on buying cryptocurrencies on its credit card. The bank continues to assess other types of payment on a case-by-case basis. This also extends to Halifax and the Bank of Scotland.
HSBC
Business Banking: Prohibited
Personal Banking: Prohibited
HSBC strictly prohibits customers from sending or receiving money from any crypto exchange. They have recently also stopped allowing customers using HSBC credit cards to fund their accounts.
Santander
Business Banking: Prohibited
Personal Banking: Prohibited
Santander strictly prohibits customers from sending or receiving money from any crypto exchange.
Metro Bank
Business Banking: Prohibited
Personal Banking: Prohibited
Like Natwest, Metro Bank will not do business with any company accepting cryptocurrencies. The bank will also close personal accounts with a high volume of transactions from and to crypto exchanges.
Nationwide
Personal Banking: Under Review, Binance Prohibited
Unlike all other high street banks, Nationwide remains one of the very few that have not put any restrictions in place (says their website) except for transfers to Binance. However, the bank has stressed that it will review any unusual activity including payments to crypto exchanges.
Virgin Money
Virgin Money has been blocking customers from purchasing crypto on their credit cards as far back as 2018 and the restriction remains in place.
Tesco Bank
Although Tesco Bank is closing down all its current account offerings, it will still be offering credit cards, loans and insurance products. Tesco recently said anyone using their Tesco credit cards to fund Crypto trading accounts will be blocked.
Regulation
Until there is clear clarity and regulation, investors will continue to face restrictions from buying or selling cryptocurrencies from crypto platforms that are not registered with UK regulators.
Talk To Us
Have you experienced any problems with transferring funds to and from any crypto exchanges from your bank? Get in touch and let us know.
You can transfer funds to revolut from any bank and send onto an exchange. I did this sending funds to Crypto.com
Barclays are giving me problems, has anyone had problems with them?
No, all good for me but I am only sending small amounts once a month.
I sure have————-they froze my account on the first payment——–going to see bank manager tomorrow——-they wont let $ 30500 through to me
Helpful updates on established banks approach to crypto exchanges, where can I find out about banks consistent in their support?
Halifax keeps blocking any transaction Im trying to do with Binance. This is just another form of CONTROL and needs to stop. We jump through hoops with complying with 2 factor authorisation, app transaction approval etc and they still have the AUDACITY to block transactions. Its my money and I have the right to spend it as I wish. Will soon be kicking Haifax and taking my business elsewhere.
Several individuals have reported that they have had no problems dealing with Binance using Monzo. Don’t quote me on this as I have not tried and tested this myself.
So true I have had so many issues with virgin and Santander I’m hoping tsb allows it. Total control not like us having control over our own money
TSB has blocked all my transactions to 3 different exchanges citing fraudulent transactions, this included cex.io in London.
Tsb blocked my transfer
didnt know Santander was a no go
This is absolute crap, I am sorry to say – it all depends on your credit/money flow history, Lloyds in my case has never ever blocked anything, and I have transfered 5 figure sums in and out. Misleading article!
Thank you for your contribution, I have updated the article to reflect Lloyds latest cryptocurrency policy.
What is the latest policy??
It’s a grey area really. They assess transfers on a case-by-case basis.
However, not heard of problems when making withdrawals from exchanges to Lloyds.