UK Banks Block 40% of Crypto Transactions Amid Debanking Crackdown
UK banks have escalated restrictions on digital asset platforms, with nearly 40% of payments to regulated crypto exchanges now being blocked. This systemic debanking is creating operational paralysis for exchanges and eroding user trust in the UK market.
Payment failures have surged across both bank transfers and card transactions, with 80% of exchanges reporting worsening conditions. No platforms have seen improvement in banking access over the past year, prompting some to consider relocating operations abroad.
The industry warns that blanket banking bans threaten to stifle innovation, with one exchange alone reporting nearly £1 billion in declined transactions. Market participants are urging regulators to intervene before the UK loses its position in the digital asset ecosystem.
