UK banks face 10,000 complaints in 3 months over crypto restrictions
The U.K. claims to aspire to become a global cryptocurrency hub, an ambition that would appear to be at odds with the attitude to crypto purchases of its major banks.
Over a three-month period from May to August, more than 10,000 consumers submitted complaints to the U.K. about restrictions imposed by high-street banks on cryptocurrency purchases, according to advocacy group Stand With Crypto. The complaints, which came from individuals in all 650 parliamentary constituencies of the country, highlight a potential conflict between the government's efforts to attract crypto businesses and the restrictions imposed by banks on consumer access to regulated crypto venues.
Lloyds Banking Group, which includes Halifax and Bank of Scotland, received the most complaints at 2,297, accounting for 23% of the total. Barclays and NatWest Group followed with 1,569 and 1,278 complaints, respectively. The findings suggest a disconnect between banks' stated restrictions and the experiences of customers, who often face blocked or delayed transfers. While some banks explicitly state limits on crypto transactions, others prohibit transactions altogether.
The SWC argues that blanket restrictions on crypto transfers by banks conflict with the expectation that financial crime controls should assess individual customers and transactions. Banks have a legitimate interest in scrutinizing crypto transfers due to the risks of fraud, scams, and money laundering. However, the group suggests that such blanket restrictions go beyond proportionate risk management and undermine the government's goal of creating a welcoming environment for crypto businesses.
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