“The Inside Story: What’s Really Behind UK Banks Blocking Crypto Transfers”

Many UK high street banks are blocking payments to and from major cryptocurrency exchanges such as Binance and Coinbase.

Aqu speaks to Adrian Ip, managing director at Aqu about the underlying reasons for this crackdown on crypto.

As we venture forth into 2023, will banks reverse their course and let crypto back in from the cold, or will they allow this infant industry to wither on the vine?

Banks in the UK are taking different stances on cryptocurrency. Some are blocking customer access to cryptocurrency trading completely, while others are just making it harder.

Many customers of retail banks have become frustrated, as some banks have not only banned money transfers to exchanges, but have also blocked withdrawals from exchanges into banks.

This locks user funds on exchanges such as Binance and Coinbase (COIN), leaving customers no other option but to find a bank that is still crypto-friendly if they want to convert their funds.

Ip says the reason why banks have taken such a cautionary approach to the burgeoning cryptocurrency sector is down to their fear of change.

He said: “Banks must consider the risks of allowing their consumers to interact with organisations that potentially have the capability to cause consumer detriment and to do things with consumer money that would result in bad outcomes.” The managing director at Aquis Exchange says that the traditional financial ecosystem is heavily regulated and that this is the reason why the cryptocurrency sector has been slow to take off.