Two fifths of UK crypto investors report blocked payments – UKTN

Two fifths of UK crypto investors have had payments blocked or delayed by their bank when trying to buy digital assets, according to new research.

Mainstream banks in the UK have had a difficult relationship with the blockchain and cryptoasset sector, with many opting for high levels of caution when dealing with the asset type that to this day lacks a clearly defined regulatory framework.

New research from IG has found that in a survey of UK crypto investors, 40% complained of payment issues from their banking provider.

When interventions like these happen, banks generally cite fraud prevention, with some, including Starling Bank, stating explicitly that they will not support crypto transactions.

In a separate survey from IG of UK adults, a third supported blocking and delaying crypto transactions, while 42% were opposed.

Crypto’s banking issues extend beyond retail investors. UKTN reported last month that a vast proportion of the professional crypto and wider blockchain industry struggles to even secure a business bank account from mainstream institutions, presenting an enormous barrier to growth.

“We’re in a damaging position where millions of people are effectively being locked out of crypto just because of who they bank with. This kind of behaviour is at best anti-consumer, at worst anti-competitive – and it’s not backed by the public,” said Michael Healy, UK managing director at IG.

“This overreach from banks is only possible because there’s still no clear UK regulatory framework in place governing crypto. Until that changes, responsible firms and investors will be penalised. If the government is serious about making the UK a home for crypto innovation, it needs to act.”

The findings follow a handful of warnings from figures including the Payments Association and former UK chancellor George Osborne claiming the UK is falling behind in crypto without clear rules and support.

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