In a recent survey conducted by IG Group, it was found that four in 10 crypto investors in Britain have experienced their banks blocking or slowing payments to digital asset platforms. This highlights the growing tension between traditional finance and the country’s crypto sector.
Among the 500 active crypto users and 2,000 adults surveyed, nearly a third of those affected filed complaints, while more than a third decided to switch banks after encountering restrictions. Public opinion on the issue is divided, with 42% of adults opposing banks stepping in to restrict crypto payments, while about one-third supported the practice.
Despite the fact that trading digital assets is legal in Britain, investors face regulatory and banking limitations when trying to move money into the sector. Only companies registered with the Financial Conduct Authority (FCA) are allowed to offer crypto services in pounds, and retail buyers are prohibited from using credit cards or other forms of borrowed capital.
Some high-street banks, such as Chase UK and NatWest, have implemented additional restrictions due to fraud risks, making it difficult for customers to fund accounts with regulated exchanges.
These findings add to the broader criticism of the U.K.’s cautious approach to digital assets. Former Chancellor of the Exchequer George Osborne, who now advises Coinbase, believes that Britain is falling behind other financial centers. He pointed out the lack of pound-backed stablecoins in a global market worth nearly $300 billion, with sterling-linked tokens accounting for only a small fraction of the total supply.
However, regulators have made some incremental changes. Starting from October 8th, the FCA will allow retail investors to trade crypto exchange-traded notes, reversing a ban that was imposed during a period of high volatility.
Overall, the survey results shed light on the challenges that crypto investors in Britain are facing when it comes to accessing and trading digital assets. The tensions between traditional banking institutions and the crypto sector continue to pose obstacles for those looking to participate in the growing market.