A sizable portion of banks in the area are amenable to enabling clients to engage with digital assets, even as the UK continues to investigate how to treat cryptocurrencies. Banks serve as a conduit between clients and websites like cryptocurrency exchanges.
What about other financial institutions?
According to a Finder.com (1) study cited by The Fintech Times on October 14, just 47% of UK banks do not have rules permitting consumers to interact with cryptocurrency exchanges in this fashion, with the majority citing security concerns. The poll included responses from 17 of the UK's largest banks, building societies, and banking applications. Seven institutions contacted prohibit debit/credit card transactions from purchasing from crypto exchanges. These banks include Halifax, HSBC, The Co-operative Bank, and TSB, to name a few.
Bitcoin friendly banks
Only four institutions could be deemed as cryptocurrency-friendly. Digital-only banks or banking applications, such as Starling, Monzo, and Revolut, fall under this category. It is noteworthy that the platforms allow transfers and withdrawals from cryptocurrency exchanges other than Binance (2), which is prohibited in the nation. The study found no limitations on client contacts with a cryptocurrency exchange at a crypto-friendly bank. Customers may use their debit cards to buy cryptocurrencies, pay for exchanges, withdraw money from their cryptocurrency wallets, and deposit it into a current account.
Additionally, institutions, including Barclays, Lloyds Bank, Bank of Scotland, NatWest, and RBS, use various approaches and procedures to allow clients to deal with cryptocurrencies. Notably, they have limitations like those that prevent credit card payments. The study shows that banks are truly concerned about client security, which is essential, while there is undoubtedly space for improvement in how they communicate their rules. Since cryptocurrency is here to stay, this sporadic communication will need to be fixed as soon as possible.
UK's crypto laws
In the future, The UK plans to create a legislative framework for cryptocurrencies to turn the country into a center for digital assets. Notably, exchanges have become one of the main ways to invest in cryptocurrencies, with the nation registering a sizeable number of investors. For instance, Statements made on September 23 of approximately £31.795 billion ($34.7 billion) were invested in cryptocurrencies by British individuals.