Crypto-Friendly Banks UK 2022
If you have Googled 'crypto friendly banks UK', you'll know that they are few and far between.
The majority of UK banks have so far not responded to customer demands to be able to pay for cryptocurrencies from their accounts or receive funds from crypto exchanges into their accounts.
If you've tried to get a crypto-related payment reported in your account, you'll understand why you need a crypto-friendly bank.
That need has prompted a surge in largely fruitless searches for 'crypto friendly banks UK'.
Here, we'll try to help answer that query.
Crypto Friendly Banks UK
Financial institutions that accept cryptocurrencies as payment are known as crypto-friendly banks. In other words, these institutions allow cryptocurrency trading and support digital currencies for fiat currency transactions.
In the United Kingdom, it is legal to own and trade cryptocurrencies. Even though there is no tangible asset to hold, they are now classified as property assets rather than currency.
Any crypto exchanges in the UK must register with the Financial Conduct Authority, which regulates the industry to prevent money laundering. According to the FCA, any trading platform must demonstrate its compliance with anti-money laundering rules.
Binance, a cryptocurrency trading platform, was barred from participating in any regulated trading in the UK in 2021 for failing to demonstrate that it respected those standards. This demonstrated that the FCA isn't hesitant to take action against cryptocurrency trading platforms.
5 Crypto Friendly Banks UK
Here are five banks operating in the UK which are considered crypto-friendly:
• Revolut: Revolut is an app-based challenger bank that is crypto-friendly in the United Kingdom. Customers can not only trade stocks and shares through their accounts, but Revolut is also a firm believer in cryptocurrency. In the past, crypto exchanges (like Binance) have temporarily blocked GBP deposits and withdrawals. Alternative fiat currencies, such as US Dollars or Euros, can be used with Revolut. • RalisBank: Railsbank was founded in 2016 by fintech veterans Nigel Verdon and Clive Mitchell. It has offered digital banking services since its inception, breaking new ground and pushing the envelope. RalisBank is setting the standard for making financial products and services digital and embeddable, allowing customers to have deeper and richer interactions with the brands they love. • TSB: TSB is known to accept credit and debit card purchases of cryptocurrency. Withdrawing or depositing to bitcoin exchanges has never been a problem. However, banks often flag large transfers, and you may need to split transfer amounts or contact TSB in such circumstances. • Royal Bank of Scotland (RBS): The UK Government-owned RBS has taken a favorable stance on Bitcoin transactions in recent years. In addition, the bank allows you to buy and trade cryptocurrencies. RBS will limit payments to Bitcoin exchanges that pose the most significant risk of financial loss. • Solaris Bank: Solaris is a well-organised bank that provides cryptocurrency transactions and custody of cryptocurrency. It established a regulated cryptocurrency custody service in early 2021, based on a brokerage and trading application programming interface.
Which Banks Aren't Crypto-Friendly?
Lloyds: Since 2018, the Banking Group (which includes Lloyds Bank, Halifax, Bank of Scotland, and MBNA) has prohibited any credit card payments to cryptocurrency exchanges. Regarding debit card payments, it's more hit-or-miss. Sometimes the transaction goes through smoothly, and other times it's reported as fraud. If you plan to trade regularly, you should probably avoid it.
Starling: Although its international currency provider does not support cryptocurrency exchange payments, and there may be other reasons why payments are denied, there is no formal policy prohibiting them. Customers have already reported frozen accounts, so this is another one to avoid.
HSBC: It previously claimed to be crypto-friendly, but does not allow deposits, and payments made using debit and credit cards are sometimes denied. It's not completely unfriendly, but there's a higher risk of your payments failing or being identified as fraudulent, so another bank might be a better option.
The number of people holding cryptocurrency constantly expands worldwide, including in the United Kingdom. The number of businesses accepting Bitcoin as payment is also increasing. Despite the severe dangers and restrictions associated with cryptocurrency transactions, several banks in the United Kingdom allow users to do so simply.
Hopefully, this article means you won't have to search Google for 'crypto friendly banks UK' this year!
Author: Brendan Beeken
Moni Talks Founder and Chairman Brendan Beeken is an entrepreneur, commercial strategist, investor, and philanthropist. He writes on a wide range of subjects, including cryptocurrency, decentralised finance, blockchain, business advice, and professional wellbeing, for news and business websites, as well as Latest Moni and his personal site, brendanbeeken.com. Brendan draws from his own research and more than two decades of personal experience in business to offer a unique insight, perspective, and commentary on diverse subjects. He is passionate about making the cryptocurrency space more accessible and encouraging safer and more responsible trading and investing. Brendan's LinkTree is https://linktr.ee/brendanbeeken.