40% of UK Crypto Users Report Blocked Payments as Banks Tighten Rules

A new survey reveals that nearly half of UK crypto investors face blocked or delayed payments from their banks, raising alarms about the country’s position in the global digital asset race.

• 40% of UK crypto users reported blocked or delayed payments by their banks.
• 29% of those affected filed complaints, while 35% switched banks.
• Banks like Chase UK and NatWest have restricted payments to crypto exchanges.
• FCA bans use of credit cards and borrowed money for crypto purchases.
• Former Chancellor George Osborne warns UK is “falling behind” in crypto adoption.
• Pound-based stablecoins remain negligible compared to the US dollar market.

The latest survey by IG Group highlights the growing friction between UK banks and cryptocurrency users. Out of 500 UK investors surveyed, 40% said their banks had blocked or delayed transactions to crypto providers. This has led to frustration among investors, with nearly a third lodging formal complaints and over a third opting to change their banks entirely.

When asked about banking interventions in crypto, the wider population remained split — 42% opposed such measures, while 33% supported them. Michael Healy, IG’s UK managing director, called the situation “anti-consumer and anti-competitive,” warning that millions of Britons are being locked out of crypto simply based on who they bank with.

Although trading cryptocurrencies is legal in the UK, funding accounts remains one of the biggest hurdles. Only Financial Conduct Authority (FCA)-registered firms can operate fiat on- and off-ramps, and high-street banks have increasingly imposed restrictions, citing fraud prevention. On top of this, the FCA has barred the use of credit cards and borrowed money for digital asset purchases, further narrowing the options for retail investors.

This comes as the UK faces mounting criticism for falling behind other countries in digital asset adoption. Former Chancellor George Osborne, now a Coinbase adviser, recently wrote that the UK has “allowed itself to be left behind” in the crypto race. He pointed to the lack of progress on stablecoins, noting that pound-based tokens barely exist compared to the $288 billion global stablecoin market dominated by the U.S. dollar.

Despite these setbacks, there are small signs of progress. The FCA recently lifted its ban on retail trading of crypto exchange-traded notes (ETNs), set to take effect on October 8, a move that regulators say reflects the sector’s gradual maturity.

Final Thought

The banking restrictions facing UK crypto users highlight the growing disconnect between financial institutions and consumer demand. Unless the UK addresses these barriers and embraces digital assets more fully, it risks losing its competitive edge in the global financial system.