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UK banks refuse to work with crypto companies: report
Crypto firms in the United Kingdom are struggling to obtain banking services, Bloomberg reported Sunday, citing multiple sources. Local crypto executives expressed frustration over rejected applications, frozen bank accounts and overwhelming paperwork. The situation was exacerbated by the departure of US-based lenders Silvergate Capital, Signature Bank and Silicon Valley Banks. Banking Restrictions Hamper Crypto Firms in the UK According to the report, the banking problem in the UK has become so bad that some companies have filed complaints with the government. Despite Prime Minister Rishi Sunak's efforts to establish the UK as a hub for digital assets, local banks are working against this goal. Edouard Daunizeau,...
UK banks refuse to work with crypto companies: report
Crypto firms in the UK struggle to retain banking services, BloombergreportedSunday, citing multiple sources. Local crypto executives expressed frustration over rejected applications, frozen bank accounts and overwhelming paperwork.
The situation was exacerbated by the departure of US-based lenders Silvergate Capital, Signature Bank and Silicon Valley Banks.
Banking restrictions are hindering crypto firms in the UK
According to the report, the UK's banking problem has become so bad that some companies have lodged complaints with the government. Despite Prime Minister Rishi Sunak's efforts to establish the UK as a hub for digital assets, local banks are working against this goal.
Edouard Daunizeau, the founder of SavingBlocks, a crypto startup that offers a range of portfolios for passive investors, revealed that he had difficulty securing his company's bank account.
According to the report, Daunizeau was rejected by seven of the nine lenders he approached for a bank account. The two banks that accepted his application have asked him for additional documentation to provide details about how he monitors his customers' transactions.
Joe David, another executive who co-founded crypto-focused accounting and services firm Nephos Group, revealed that money transfer platform Wise Plc froze his company's accounts for more than three months starting in November, citing a breach of terms and conditions.
Following an inquiry, a spokesperson for Wise said the platform does not support companies involved in crypto and freezes the accounts of customers found to be involved in such activities.
Crypto VC investments plunged 94% in the first quarter
Big banks likeHSBC holdingsAndNatWest Grouphave also limited the amount of money customers can move in crypto exchanges.
With ongoing banking restrictions, UK lenders are already losing crypto ground to the rest of Europe. Data from PitchBook, a venture capital (VC) research firm.revealedthat VC investment in digital asset companies fell 94% from 2022 to $55 million in the first quarter, while the rest of Europe saw a 31% increase.
Commenting on the matter, Simon Jennings, chief executive of advocacy group the UK's CryptoAsset Business Council, said: "When crypto started, the purists said crypto will bring down the banks. But ironically, it is the banks that could bring down crypto."
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