According to various sources consulted by international reporters, crypto firms in the United Kingdom are having trouble gaining access to traditional banking financial systems. Banks who are still working with crypto companies are asking for greater proof that they are keeping tabs on their customers’ transactions.
Rejection of applications, freezing of accounts, and mountains of paperwork are all obstacles. Since the situation has deteriorated over the previous weeks, crypto firms have gone as far as complaining to Prime Minister Rishi Sunak’s cabinet. This action runs counter to Sunak’s goal of transforming the United Kingdom through disruptive financial technologies. a nerve centre for the crypto world.
“The U.K. the international magazine quoted Coinbase’s vp of international strategy, Tom Duff-Gordon, as saying, “The banking reaction has been more acute than the EU one.” Duff-Gordon claims that the work being done by the EU to regulate digital assets is having the effect of warming the hearts of banks around the world towards cryptocurrency businesses. After being introduced in September of 2020, the European Parliament’s Committee on Markets in Crypto Assets (MiCA) finally passed the bill in October. This month will be the last chance for voters to approve it.
According to PitchBook data, venture capital investment in digital asset startups has decreased 94% to $55 million in the United Kingdom so far in 2023, while it has increased by 31% across the rest of Europe. To keep their U.K. operations running smoothly, crypto firms are using payment service providers like BCB Payments and Stripe.
Along with banks HSBC Holdings and Nationwide Building Society banned bitcoin purchases
In an effort to join a growing list of banks in the country tightening limitations on digital assets, HSBC Holdings and Nationwide Building Society banned bitcoin purchases via credit cards for retail clients earlier in March.
To counteract banks’ reluctance or outright restriction on transactions with crypto enterprises, the self-regulatory trade association CryptoUK proposed a “white list” of registered firms in the country in March. “Several of the most prominent U.K. banks have implemented prohibitions or limits, and CryptoUK is worried that other financial institutions and PSPs will follow suit. “At this point, we think official action is necessary.”
Authorities in the UK have taken a similar stance to those in the US. are taking steps to restrict crypto businesses. Executives of crypto businesses may face two years in prison if they fail to follow specific standards relating to promotion, as outlined by the Financial Conduct Authority in February.
To read our article about “Dubai Airport wins the “Best Employer Brand” award of 2023” click here.
