Stand With Crypto UK urges challenge to banks blocking crypto

Stand With Crypto UK is urging its 286,000 members to challenge British banks that block transfers to cryptocurrency exchanges. The group cites a report from the UK Cryptoassets Business Council that found roughly 40% of crypto-related transactions were blocked or restricted by banks.

The report says many restrictions affect transfers to exchanges registered with the Financial Conduct Authority and do not reflect individual customer risk profiles. One exchange reported nearly £1 billion in declined transactions over a 12-month period, and 80% of platforms surveyed recorded increases in blocked or limited transfers.

Stand With Crypto launched an online tool that generates formal complaint letters members can submit to banks. The group plans to use banks’ responses to determine the campaign’s next steps. The campaign uses the tagline: “Your money. Your choice.”

Mark Fairless, chief executive of ClearBank, urged a risk-based approach to crypto-related payments, adding: “Interventions should be targeted and proportionate, as broad blocks risk undermining competition and the ability of regulated firms to operate effectively in the UK.”

The campaign coincides with ongoing regulatory work on a UK stablecoin framework. In early May a House of Lords committee questioned industry executives on bank-run risks, anti-money-laundering controls and the potential impact of stablecoins on traditional banking.

Later in May the Bank of England said it was reconsidering proposed caps on stablecoin holdings and reserve requirements while reviewing rules for pound-denominated tokens. In June the House of Lords committee warned that some proposed reserve and holding rules could reduce the viability of pound stablecoins and urged regulators to avoid measures that would limit the sector’s growth while the framework is finalised.

Regulators say they want to support a domestic stablecoin market while limiting risks to bank funding and financial stability. Other recent proposals include extending operating hours for settlement infrastructure to support tokenised markets and allowing certain retail-focused investment funds to allocate up to 10% of their portfolios to crypto exchange-traded products.