Revolut identified as the most crypto-friendly UK bank as 38% of crypto investors leave legacy banks – report
The risk-averse approach of major banks threatens the UK's crypto hub ambitions, a new report reveals.
The UK government aims to establish London as a global blockchain hub. Yet, restrictive cryptocurrency policies implemented by major banks appear to contradict these ambitions, according to a recent report by crypto tax software provider Recap.
The report reveals the risk-averse approach adopted by banks has led to blanket bans on crypto transactions, impacting businesses and individual investors alike.
According to Recap’s poll, 38% of crypto investors have switched banks due to difficulties trading digital assets, with another 22% considering doing so.
Su Carpenter, Director of Operations at CryptoUK, told Recap,
“The blanket bans on transactions from account holders to crypto exchanges totally goes against the Government’s ambitions for the UK to become a global crypto hub.”
Moreover, businesses are forced to use overseas providers, negatively impacting the UK’s ability to attract organizations and talent.
Most crypto friendly bank in the UK.
Recap named Revolut as the most cryptocurrency-friendly bank, being the only one enabling trades via mobile banking while also providing educational tools to customers. Meanwhile, banks like HSBC and Natwest have implemented strict limits, allowing merely £2,500-£5,000 in crypto purchases per month, according to Recap’s findings.
Recap’s criteria for a ‘crypto-friendly bank‘ is as follows:
- Allow customers to transfer money to centralized cryptocurrency exchanges.
- Allow customers to buy, sell, and hold digital assets directly.
- Have a broader limit on how much you can withdraw and deposit in your account.
- Allow users to purchase cryptocurrency using a debit or credit card.
Legacy institutions are seemingly struggling to adapt amid disruption by blockchain technology. For the UK to flourish as a global crypto leader, regulators must create an even playing field for investors while ensuring compliance, according to the report.
Striking the ideal balance requires input from both industry and government. However, Recap states progress relies on regulators intervening to enforce necessary changes in banking, as voluntary engagement faces roadblocks. The tax software provider also highlights how restrictive crypto services and rules may impact individuals’ ability to organize taxes due to issues accessing accounts.