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A sizable portion of banks in the area is open to allowing clients to engage with digital assets, even as the UK continues investigating how to treat cryptocurrencies. Notably, banks are serving as a conduit between customers and websites like cryptocurrency exchanges.
According to a Finder.com study cited by The Fintech Times on October 14, just 47% of UK banks do not have rules permitting consumers to interact with cryptocurrency exchanges in this line, with the majority citing security concerns.
The survey included responses from 17 of the UK’s largest banks, building societies, and banking applications. Seven of the institutions that were contacted prohibit debit/credit card transactions from making purchases from crypto exchanges. These banks include Halifax, HSBC, The Co-operative Bank, and TSB, to name a few.
Banks that accept cryptocurrencies
Only four institutions, according to the report, could be deemed cryptocurrency-friendly. Digital-only banks or banking applications, such as Starling, Monzo, and Revolut, fall under this category.
It is noteworthy that the platforms allow transfers and withdrawals from cryptocurrency exchanges other than Binance, which is prohibited in the nation.
The study found that there are essentially no limitations on customer contact with a cryptocurrency exchange at a crypto-friendly bank. Customers may use their debit cards to buy cryptocurrencies, pay for exchanges, withdraw money from their cryptocurrency wallets, and deposit it into a current account.
Additionally, a variety of approaches and procedures are used by institutions like Barclays, Lloyds Bank, Bank of Scotland, NatWest, and RBS to allow customers to deal with cryptocurrencies. Notably, they contain limitations such as preventing credit card payments and only allowing certain transactions.
UK cryptocurrency laws
The survey results are released as the UK plans to create a legislative framework for cryptocurrencies to turn the country into a centre for digital assets. Notably, exchanges have become one of the main ways to invest in cryptocurrencies, with the nation recording a sizeable number of investors.
For instance, Finbold stated on September 23 that approximately £31.795 billion ($34.7 billion) had been invested in cryptocurrencies by British individuals.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
