Crypto Clients getting turned down by United Kingdom Banks | PM on other quest

[Flexystar]

Prime minister Sunak led the country to the UK, and his dream to make the UK a Crypto Hub is breaking apart considering the main system is ignoring the whole concept of what the PM stated in the first place.

With the recent news, UK banks are not accepting any Crypto-associated users and companies to open their bank accounts with them, banks are also freezing the accounts of current users/companies, and those who have accounts already approved, are asking for more and more documentation.

In short, they do not want anyone to operate crypto-related accounts.

On the other hand, Gordon Duff said that European Union is also trying to make efforts which are in turn making various banks "receptive" to the technology but the UK is doing exactly the opposite to that.

It also contradicts Rishi Sunak's statement associated with Royal Mint NFT creation which is:

Chancellor @RishiSunak has asked @RoyalMintUK to create an NFT to be issued by the summer.

This decision shows the the forward-looking approach we are determined to take towards cryptoassets in the UK.

Crypto companies are facing difficulties accessing banking services in the United Kingdom, according to multiple sources interviewed by Bloomberg. The few banks still working with crypto firms are requesting more documentation and information about how they monitor clients’ transactions.

Challenges include having applications rejected, accounts frozen and overwhelming paperwork. Crypto companies have even complained to the government of Prime Minister Rishi Sunak, as the situation worsened in the past weeks. The move goes in the opposite direction of Sunak’s plans to prioritize financial technology disruption and make the U.K. a global crypto hub.

“The U.K. banking reaction has been more acute than the EU one,” Tom Duff-Gordon, vice president of international policy at Coinbase, told Bloomberg. According to Duff-Gordon, the European Union’s efforts to establish a framework for digital assets are making banks more receptive to crypto firms in other countries. The European parliamentary committee passed the Markets in Crypto Assets (MiCA) legislation in October, nearly two years after it was first introduced in September 2020. Its final vote is scheduled for this month.

So far in 2023, venture capital investment in digital asset companies reportedly dropped 94% to $55 million in the U.K., according to data from PitchBook, against a 31% increase in other countries in Europe. Crypto companies are turning to payment service providers such as BCB Payments and Stripe to maintain business operations in the U.K.

Earlier in March, the HSBC Holdings and Nationwide Building Society banned cryptocurrency purchases via credit cards for retail customers, joining a growing list of banks in the country to tighten restrictions on digital assets.

Also in March, the self-regulatory trade association CryptoUK proposed the creation of a “white list” of registered firms in the country to address banks limiting or banning transactions with crypto companies. “Many of the major U.K. banks have now put in place bans or restrictions, and we are concerned that other banks and Payment Services Providers (PSP’s) may also soon follow suit,” said CryptoUK. “We believe that government action is now warranted.”

Similar to the United States, authorities in the U.K. are tightening regulations on crypto companies. The Financial Conduct Authority proposed in February a set of rules that could subject executives of crypto firms to two years in prison if they don’t meet certain conditions related to promotion.

UK banks are turning away crypto clients: Report

[YUriy1991]

I think The UK Prime Minister, Rishi Sunak, wanted to make the UK a hub for cryptocurrencies, but UK banks are not allowing crypto-related users and companies to open bank accounts. Some banks are even freezing the accounts of current users and asking for more documentation. In my opinion this is making it difficult for crypto companies to do business in the UK. The situation is worse in the UK compared to other European countries where banks are becoming more receptive to cryptocurrencies.

The UK's reaction is causing venture capital investment in digital assets to drop in the country. The self-regulatory trade association CryptoUK proposed creating a "white list" of registered firms in the country to address banks limiting or banning transactions with crypto companies.

[Husires]

I do not know anything about Sunak's economic policies or what he is trying to offer to the British economy, especially in the field of cryptocurrencies, but all that is happening now is an attempt to break the link between cryptocurrencies and banking, and thus avoid any financial crisis that could occur if cryptocurrency platforms go bankrupt.

Not accepting Bitcoin on these platforms dries up the liquidity in its hand, and therefore it will be easier to place regulations on it because it will not be able to withstand much.

What I am trying to say is that what is happening is an attempt to limit the growth of the market, close small platforms, and weaken large platforms. The continuation of this policy for several years will make the legislative regulation of digital currencies possible.
Or at least this is my analysis of what is happening.

[EarnOnVictor]

This is an example of fiat fighting back, maybe they've realized the dominance of the cryptocurrencies and are jealous of how they are missing businesses because of it. Well, this is not a good approach by them, and as this goes along, I believe other banks from other countries might follow suit unless there is an upgrade in the banking law that prohibits such acts.

This is similar to how some banks are working against some fintech in my country because they are taking their businesses. But it doesn't always work well for them (banks) at last as there are ways to go around their overbearing nature.

It's a matter of time.

[Distinctin]

This is an example of fiat fighting back, maybe they've realized the dominance of the cryptocurrencies and are jealous of how they are missing businesses because of it. Well, this is not a good approach by them, and as this goes along, I believe other banks from other countries might follow suit unless there is an upgrade in the banking law that prohibits such acts.

This is similar to how some banks are working against some fintech in my country because they are taking their businesses. But it doesn't always work well for them (banks) at last as there are ways to go around their overbearing nature.

It's a matter of time.

Banks will never allow crypto to dominate in the financial industry that's why they are making a lot of restrictions on crypto and even on the companies that are associated with crypto. I don't think this is new to us as this is what also happening even in other big countries particularly USA.  The government controls the banks, and banks are obliged to stick with the government rules. However, in this case, its like even the head of the cabinet in the government can no longer control the restrictions of crypto imposed by the banks.

[avikz]

This was expected to happen. Even in my country, crypto companies faced the same issue. It went to such a level where some companies decided to close down their operations and one of them moved out to Singapore from where they are providing services to 30+ countries.

You need to understand that banks are the biggest financer of any country. So they have a very strong lobby and high level connections within the government. So such attacks will continue to happen, worldwide. UK is just leading the way.

[adaseb]

They are doing this because of what happens with Silvergate and Silicon Valley bank. They think that due to crypto those banks failed.

FTX started the fear and it led to Silvergate collapse which spread to Silicon Valley. However Silvergate was mostly a big crypto bank for all exchanges. Silicon Valley wasn’t. And most of these banks around the world aren’t keeping customers who trade crypto. Makes no sense to close their accounts.

[jaberwock]

This is an example of fiat fighting back, maybe they've realized the dominance of the cryptocurrencies and are jealous of how they are missing businesses because of it. Well, this is not a good approach by them, and as this goes along, I believe other banks from other countries might follow suit unless there is an upgrade in the banking law that prohibits such acts.

This is similar to how some banks are working against some fintech in my country because they are taking their businesses. But it doesn't always work well for them (banks) at last as there are ways to go around their overbearing nature.

It's a matter of time.

I think it's not because of "crypto domination", fiat is still fiat and everyone uses it and that's not going to change anytime soon. But at the same time I do feel like there is this case of people caring more about crypto and regulations on that instead of regulations on fiat. I mean there are a trillion regulations on fiat as well and not many people know them all.

Even "burning fiat banknote" is illegal in some nations as disrespecting the nation, it's true. So all in all I would say there is more care, not usage, people don't use it as much as fiat, but they do care more about it than fiat as well. I would rather have bitcoin than fiat too, but that's me personally.

[Die_empty]

Banks will never allow crypto to dominate in the financial industry that's why they are making a lot of restrictions on crypto and even on the companies that are associated with crypto. I don't think this is new to us as this is what also happening even in other big countries particularly USA.  The government controls the banks, and banks are obliged to stick with the government rules. However, in this case, its like even the head of the cabinet in the government can no longer control the restrictions of crypto imposed by the banks.

The news of Rishi Sunak a perceived crypto enthusiast becoming the Prime Minister of England received a lot of commendations from the crypto sector. Many people in the sector believed he will make friendly policies that will make the crypto space more acceptable in his country. But this dream is gradually fading away because from this news he is doing the contrary.

The English economy is solely connected to her political sector. Most economic policies must be rectified and certified by the legislature and most of these politicians were sponsored by big banks during their elections so they must protect the interest of their financiers. The prime minister might have good intentions for the cryptocurrency industry but the structures and systems of the nation will always frustrate this good intention.

[siniminomorocomunisakito]

They are doing this because of what happens with Silvergate and Silicon Valley bank. They think that due to crypto those banks failed.

FTX started the fear and it led to Silvergate collapse which spread to Silicon Valley. However Silvergate was mostly a big crypto bank for all exchanges. Silicon Valley wasn’t. And most of these banks around the world aren’t keeping customers who trade crypto. Makes no sense to close their accounts.

Yes it definitely is, and some banks are wary of cryptocurrencies because of the risks they pose, the fact is that not all banks share this perspective. Some banks have even started offering cryptocurrency related services to their customers.

Some banks may be careful about cryptocurrencies, this does not mean that they will reject clients trading them. because Each bank has its own policy, and it is up to the client to determine if a particular bank suits their needs.

[slapper]

Damn. The United Kingdom's banking system is extremely unwelcoming to those involved in the cryptocurrency industry. You have to ask if the government's interest in financial technology is genuine or just lip service.

Economist here, and I must say I have little faith in the government's ability to strike a fair balance between restrictions and new ideas. Too many rules have demonstrated in the past to stifle creativity and hamper economic development.

The government's plan to compile a "white list" of registered businesses, while well-intentioned, appears like a band-aid solution to a deeper problem. Why are banks reluctant to or outright rejecting transactions with cryptocurrency businesses? Do they care about financial crime or are they just scared of the financial sector?

Government financial technology regulation ultimately requires a deeper philosophical approach. They should consider what they hope to accomplish and whether or not doing so will stifle creative thinking. If they don't, they'll fall behind countries that are more open to the sector

[Fortify]

Prime minister Sunak led the country to the UK, and his dream to make the UK a Crypto Hub is breaking apart considering the main system is ignoring the whole concept of what the PM stated in the first place.

With the recent news, UK banks are not accepting any Crypto-associated users and companies to open their bank accounts with them, banks are also freezing the accounts of current users/companies, and those who have accounts already approved, are asking for more and more documentation.

In short, they do not want anyone to operate crypto-related accounts.

On the other hand, Gordon Duff said that European Union is also trying to make efforts which are in turn making various banks "receptive" to the technology but the UK is doing exactly the opposite to that.

It also contradicts Rishi Sunak's statement associated with Royal Mint NFT creation which is:

Chancellor @RishiSunak has asked @RoyalMintUK to create an NFT to be issued by the summer.

This decision shows the the forward-looking approach we are determined to take towards cryptoassets in the UK.

It should come as no surprise really, a lot of crypto related companies are under pressure right now because Silicon Valley Bank was actually a rather key player in allowing them to handle the volume of transactions that they were doing - even if SVB did not structure themselves correctly. As we see with recent P2P exchanges being shut down due to pressure from US regulators, they are easy targets and scape goats for financial regulators right now, especially when their are jitters in the banking sector. Things like a Royal Mint NFT are simply gimmicks and distractions, it's worthless even mentioning them in this context. Any politician who claims to be friendly to cryptocurrency is often using it as a self marketing tool, to appeal to a certain crowd, but few seem to stick by it in the long run.

[South Park]

Prime minister Sunak led the country to the UK, and his dream to make the UK a Crypto Hub is breaking apart considering the main system is ignoring the whole concept of what the PM stated in the first place.

With the recent news, UK banks are not accepting any Crypto-associated users and companies to open their bank accounts with them, banks are also freezing the accounts of current users/companies, and those who have accounts already approved, are asking for more and more documentation.

In short, they do not want anyone to operate crypto-related accounts.

On the other hand, Gordon Duff said that European Union is also trying to make efforts which are in turn making various banks "receptive" to the technology but the UK is doing exactly the opposite to that.

Let them, this market is based on ideals of freedom and if some banks despite the intent of the prime minister decided to go against there is nothing to do, it is their money and they decide how they want to do business, some other banks at a different country will instead see the opportunity and take it, and by the time those which rejected bitcoin change their tune they will be heavily disadvantage due to their initial resistance to change.

[Flexystar]

They are doing this because of what happens with Silvergate and Silicon Valley bank. They think that due to crypto those banks failed.

FTX started the fear and it led to Silvergate collapse which spread to Silicon Valley. However Silvergate was mostly a big crypto bank for all exchanges. Silicon Valley wasn’t. And most of these banks around the world aren’t keeping customers who trade crypto. Makes no sense to close their accounts.

I am not sure if this happened as a result of FTX event and then followed by what happened to the SVB, but UK banks are following hardship just to keep their nation stable and away from the drama of Bitcoin. On one hand, we have UK's prime minister Mr. Rishi Sunak while on the other hand, we have the UK's hierarchical order of the Queen, the Royal family. It might be happening that they are trying to keep the UK's order as it was before and they just want the traditional ways to bloom around the UK. Now, I don't know how the order works as per their constitution but Rishi is set to create the UK as the hub of all the Crypto space. It would be interesting to see where this matter leads, and whether the UK keeps the traditional form or moves toward the new order of the digital era.

[tabas]

IIRC, this was also the same and has happened in India wherein customers that have been involved and getting deposits from any potential profit in crypto, they're being strict on them. I don't understand why these people that are in power trying to "protect" their citizens as if they're making it so dangerous to invest and get involved in crypto. There's inequality by not allowing people that are in crypto to be declined by the UK banks and with this move, we might see that other countries could do the same and will be followed on what they did to their customers as a sign of warning that they shouldn't invest in any cryptocurrency.

[Captain Corporate]

Honestly, this "fear of the government" thing is just beyond bonkers, people shouldn't be like this at all. I think companies and banks should be able to work with the crypto companies easily without fear of the government. Right now UK banks are fearing that there are governmental situations that may get it dangered and why would they end up with anything like that when the time comes they could get a fine or something like that. But if government said easily that there is nothing wrong with having a legit company as long as its following the law, this issue would have been easily solved in a day.

[Gyfts]

With the recent news, UK banks are not accepting any Crypto-associated users and companies to open their bank accounts with them, banks are also freezing the accounts of current users/companies, and those who have accounts already approved, are asking for more and more documentation.

People often forget, or don't read, the terms of service when they deposit their funds into banks. Banks are within the law in most jurisdictions to completely freeze your entire balance and require you to produce all sorts of documents in order to access your funds. They reserve the right to deny the documents and keep you in an cumbersome loop in order access your funds, if not entirely forfeiting your balance for violating of terms of service.

When you trust someone else with your funds, consider yourself to not be the "true" owner of the funds.

[serveria.com]

Prime minister Sunak led the country to the UK, and his dream to make the UK a Crypto Hub is breaking apart considering the main system is ignoring the whole concept of what the PM stated in the first place.

With the recent news, UK banks are not accepting any Crypto-associated users and companies to open their bank accounts with them, banks are also freezing the accounts of current users/companies, and those who have accounts already approved, are asking for more and more documentation.

In short, they do not want anyone to operate crypto-related accounts.

On the other hand, Gordon Duff said that European Union is also trying to make efforts which are in turn making various banks "receptive" to the technology but the UK is doing exactly the opposite to that.

It also contradicts Rishi Sunak's statement associated with Royal Mint NFT creation which is:

Chancellor @RishiSunak has asked @RoyalMintUK to create an NFT to be issued by the summer.

This decision shows the the forward-looking approach we are determined to take towards cryptoassets in the UK.

Crypto companies are facing difficulties accessing banking services in the United Kingdom, according to multiple sources interviewed by Bloomberg. The few banks still working with crypto firms are requesting more documentation and information about how they monitor clients’ transactions.

Challenges include having applications rejected, accounts frozen and overwhelming paperwork. Crypto companies have even complained to the government of Prime Minister Rishi Sunak, as the situation worsened in the past weeks. The move goes in the opposite direction of Sunak’s plans to prioritize financial technology disruption and make the U.K. a global crypto hub.

“The U.K. banking reaction has been more acute than the EU one,” Tom Duff-Gordon, vice president of international policy at Coinbase, told Bloomberg. According to Duff-Gordon, the European Union’s efforts to establish a framework for digital assets are making banks more receptive to crypto firms in other countries. The European parliamentary committee passed the Markets in Crypto Assets (MiCA) legislation in October, nearly two years after it was first introduced in September 2020. Its final vote is scheduled for this month.

So far in 2023, venture capital investment in digital asset companies reportedly dropped 94% to $55 million in the U.K., according to data from PitchBook, against a 31% increase in other countries in Europe. Crypto companies are turning to payment service providers such as BCB Payments and Stripe to maintain business operations in the U.K.

Earlier in March, the HSBC Holdings and Nationwide Building Society banned cryptocurrency purchases via credit cards for retail customers, joining a growing list of banks in the country to tighten restrictions on digital assets.

Also in March, the self-regulatory trade association CryptoUK proposed the creation of a “white list” of registered firms in the country to address banks limiting or banning transactions with crypto companies. “Many of the major U.K. banks have now put in place bans or restrictions, and we are concerned that other banks and Payment Services Providers (PSP’s) may also soon follow suit,” said CryptoUK. “We believe that government action is now warranted.”

Similar to the United States, authorities in the U.K. are tightening regulations on crypto companies. The Financial Conduct Authority proposed in February a set of rules that could subject executives of crypto firms to two years in prison if they don’t meet certain conditions related to promotion.

UK banks are turning away crypto clients: Report

That is good news for many crypto-friendly countries. Like for example Lithiania: Revolut have opened their bank there, many crypto companies and exchanges have their bank accounts in Lithianian banks (Binance, Bitstamp). Huge money is flowing into this small Baltic state. One man's loss is another man's gain they say.

[kryptqnick]

There was a UK crackdown on cryptos ATMs last year, I believe, but there are also banks like Revolut which you can use in the UK and where there's a crypto vault. Moreover, from what I've read, the UK has a pretty good tax regulation of cryptos where there's a reasonable tax-free allowance per year for cryptos. So  it's not all bad, but crypto adoption does normally mean a friendly stance toward crypto businesses. But banks are those against doing business with crypto-related entities, and banks can restrict users based on their own policies, I believe. So it's not the government that's against cryptos; it's banks as rival businesses to crypto enterprises that are causing troubles. Maybe that's not the whole story, but this seems to be the main thing for now.

[doomloop]

Prime minister Sunak led the country to the UK, and his dream to make the UK a Crypto Hub is breaking apart considering the main system is ignoring the whole concept of what the PM stated in the first place.

With the recent news, UK banks are not accepting any Crypto-associated users and companies to open their bank accounts with them, banks are also freezing the accounts of current users/companies, and those who have accounts already approved, are asking for more and more documentation.

In short, they do not want anyone to operate crypto-related accounts.

Banks are afraid of cryptocurrencies and it is not a new thing for us to know, no matter which country it is, the banks will never happily accept users who are in any way involved in cryptocurrencies because banks and cryptocurrencies are basically rivals, and how can rivals operate within the same model or allow its rival to invade its territory?

I'm not sure whether the banks are answerable to the Prime Minister or not, but if they are, then there might be changes occurring later on since the PM has a different point of view on cryptocurrencies.