Crypto group urges UK bank complaints over transfer bans

Stand With Crypto UK has launched a campaign urging customers to file formal complaints against banks that block transfers to cryptocurrency exchanges. The group says it represents 286,000 advocates in the UK.

The campaign began with an installation at Reuters Plaza in Canary Wharf, where three large blocks of ice containing banknotes were displayed to symbolise money consumers can see but cannot access. Stand With Crypto UK is asking supporters to complain to their banks about what it describes as blanket restrictions on transfers to cryptoasset exchanges registered with the Financial Conduct Authority.

The move escalates a long-running dispute between parts of the banking sector and the crypto industry over fraud controls, consumer protection and access to digital asset markets. Stand With Crypto UK argues that many banks have imposed broad limits or outright bans regardless of the exchange involved or the individual customer's risk profile.

Industry data cited by the group suggests the scale of those restrictions. The Locked Out report by the UK Cryptoassets Business Council, based on a survey of 10 of the UK's largest crypto exchanges, found that 40% of all UK crypto transactions are either blocked or restricted by banks.

According to the same report, one exchange recorded nearly £1 billion in declined transactions in a single year due to bank-side rejections. Over the previous 12 months, 80% of surveyed exchanges reported a measurable increase in blocked or limited transfers.

The issue affects a market that already reaches a notable share of the population. Financial Conduct Authority consumer research found that around 8% of UK adults currently hold cryptoassets, giving the dispute significance beyond specialist trading circles.

Consumer pressure

Rather than relying solely on regulatory lobbying, the campaign aims to apply direct pressure through bank complaint procedures. Stand With Crypto UK says banks' responses will help determine its next steps.

The organisation says its supporters include consumers, business owners, entrepreneurs and investors who want to move their own money to legal trading venues. It argues that broad bank restrictions amount to one-size-fits-all policies in a sector where the exchanges involved are already registered with the UK regulator.

"People across the UK are being blocked from accessing a legal asset class because banks have chosen to impose blanket restrictions on an entire sector. Stand With Crypto's 286,000 UK advocates are ordinary people, business owners, entrepreneurs and investors. From today, they are formally telling their banks that these restrictions are unacceptable and that consumers should be treated as individuals, not subjected to one-size-fits-all policies," said Adriana Ennab, Director, Stand With Crypto UK.

The complaint drive also reflects a broader industry argument that banking policy is misaligned with the UK's stated ambition to support digital asset activity. Crypto companies have long argued that access to basic payment rails remains one of the biggest barriers to retail participation.

Coinbase, which backs Stand With Crypto, framed the issue in terms of both national policy and customer access. The exchange has been among the companies pressing for clearer rules and more consistent treatment from financial institutions.

"The Government has set out a vision to make the UK a global hub for digital assets and Web3. That vision requires retail participation, where everyday people hold and engage with cryptoassets. But banks are choking off the crucial on-ramp from fiat money into crypto. They are putting the Government's digital asset ambitions at risk at a time when the global race for digital assets is intensifying," said Katie Harries, Head of Policy, Europe, Coinbase.

Bank tensions

Relations between banks and crypto businesses in the UK have been strained for several years. Lenders have tightened controls in response to concerns about scams, money-laundering risks, and operational exposure, while crypto firms argue that the response has become too broad and can ensnare legitimate transactions.

Stand With Crypto UK also argues that some financial institutions are taking contradictory positions. It says banks that restrict customer payments to crypto exchanges are also building digital asset teams and exploring their own products in the market.

That criticism reflects a broader competitive debate in financial services. Campaigners argue that if customers are prevented from using regulated channels to access crypto markets, they may be shut out of a legal part of the financial system while institutions remain free to pursue their own commercial strategies in the same area.

The campaign will not by itself change bank policy, but it could generate a substantial volume of customer complaints if even a fraction of the group's claimed membership takes part. For banks, that could mean having to justify retail crypto restrictions in greater detail to customers who are increasingly familiar with digital assets and may question whether blanket blocks remain proportionate.