What UK banks are banning crypto buying?

Jun 21, 2021 0 comments

The British banking sector is taking a stand against cyber-crime by preventing customers from making cash transfers to crypto exchanges.

Banks claim that trading platforms such as Binance, Kraken, and Coinbase do not perform adequate security checks to prevent criminals from using said platforms to launder money.

Fraudsters also use 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.

Kraken and Binance have refuted the claims made by UK banks, saying that they take the responsibility of protecting users from fraud very seriously.

What UK banks have banned crypto buying, and what banks allow it?

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.

Let’s take a look at all UK banks preventing customers from buying, selling or even receiving cryptocurrencies from the likes of Kraken, Binance or Coinbase.

I dabble in crypto from time to time, and I have not had any problems transferring funds from my personal Barclays account over to Kraken, but Halifax blocked me from transferring to Coinbase and Binance.

One thing to note is that banks will not involve themselves if you are buying cryptocurrencies from FCA regulated companies such as eToro.

Natwest

Business Banking: Prohibited

Personal Banking: Under Review

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.

Barclays

Business Banking: Under Review

Personal Banking: Under Review

Although Barclays has begun taking measures to ban crypto buying, it seems they are currently blocking money transfers to certain exchanges such as 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: Prohibited

Monzo has barred customers from buying or selling cryptocurrencies from any exchange.

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: Prohibited

Lloyds bank has distanced itself from crypto and does not allow customers to send or receive funds from any crypto exchange. This also extends to Halifax and Bank of Scotland.

HSBC

Business Banking: Prohibited

Personal Banking: Prohibited

HSBC strictly prohibits customers from sending or receiving money from any crypto exchange.

Santander

Business Banking: Under Review

Personal Banking: Under Review

Santander has blocked all payments to and from Coinbase. It will also block transfers to and from certain exchanges. Debit and credit card purchases are generally allowed.

Until there is clear clarity and regulation, UK investors will continue to face restrictions from buying or selling cryptocurrencies.

Sourced from investomania.co.uk.

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