Around £1 billion worth of transactions rejected
80% of crypto exchanges report a sharp increase in payment failures over the last year
🏦 Why UK banks are doing this
FCA regulatory pressure → stricter compliance & AML rules
Rising crypto-related fraud & scams, especially retail-focused
Banks taking a “de-risking” approach to avoid penalties
Poor transparency from some exchanges on fund flows
📉 Impact on users & exchanges
Retail investors face deposit delays or outright rejections
Users forced to switch banks or use workarounds (e-wallets, intermediaries)
UK-based exchanges lose competitiveness vs EU / offshore platforms
Increased user frustration and loss of trust in traditional banking
🌍 Bigger picture (macro view)
Signals bank–crypto friction is intensifying, not easing
Pushes users toward:
Decentralized finance (DeFi)
Stablecoins
Non-UK or crypto-friendly banks
Highlights the gap between innovation and regulation in the UK
🚀 What this could lead to
More demand for crypto-native payment rails
Growth of on/off-ramp alternatives
Potential long-term pressure on UK regulators to clarify crypto rules
Capital & talent moving away from the UK crypto ecosystem
🧠 Key takeaway
This isn’t crypto “dying” — it’s traditional finance resisting disruption. Historically, such friction often accelerates the shift toward decentralized systems.
