Stand With Crypto targets UK banks over crypto transfer curbs

Stand With Crypto UK has launched a campaign against bank-imposed crypto transfer restrictions after a report found that 40% of cryptocurrency transactions in the country are being blocked or limited.

According to Stand With Crypto UK, the organization is calling on its 286,000 members to challenge banks that restrict transfers to cryptocurrency exchanges, arguing that many of the affected transactions involve platforms registered with the UK’s Financial Conduct Authority.

The campaign follows findings from a report published by the UK Cryptoassets Business Council, which said bank restrictions have become a growing obstacle for crypto users and businesses.

The report found that 40% of crypto transactions are either blocked or restricted by UK banks, while many controls are applied without considering the risk profile of individual customers.

Data cited in the report showed that one crypto exchange experienced nearly £1 billion in declined transactions over a one-year period because of bank-side rejections. Separately, 80% of surveyed crypto platforms reported an increase in blocked or restricted transfers.

Bank restrictions have become a key industry concern

Through a tool available on its website, Stand With Crypto allows users to generate complaint letters challenging transfer restrictions imposed by their banks. The group said responses received from financial institutions will help shape the next phase of the campaign.

Rather than focusing on unregulated services, the organization argues that many restrictions affect transfers to FCA-registered crypto exchanges operating within the UK’s existing regulatory framework. Stand With Crypto maintains that blanket transaction limits can prevent consumers from accessing digital assets even when they are using regulated platforms.

The issue has emerged as the UK continues developing its approach to digital asset regulation. Industry participants have increasingly argued that banking restrictions are limiting participation in the crypto market despite efforts by regulators to establish clearer rules for the sector.

Figures from the UK Cryptoassets Business Council suggest the problem has intensified over the past year. Alongside the reported £1 billion in rejected transactions at one exchange, the survey’s findings indicate that transfer restrictions are becoming more common across multiple crypto platforms.

UK regulators continue refining crypto rules

While Stand With Crypto’s campaign focuses on banking access, policymakers are simultaneously advancing several digital asset initiatives.

Earlier this month, as reported by crypto.news, a House of Lords committee warned that certain proposed Bank of England stablecoin requirements could make pound-denominated stablecoins harder to scale commercially. The committee supported a clear UK regulatory framework but cautioned that reserve requirements and holding limits should not undermine the viability of potential issuers.

Additional regulatory proposals have also emerged in recent weeks. In May, the Bank of England proposed extending operating hours for the country’s settlement infrastructure to support tokenized financial markets.

More recently, on June 8, the Financial Conduct Authority proposed allowing certain retail-focused investment funds to allocate up to 10% of their portfolios to crypto exchange-traded products.

As regulators continue shaping the UK’s digital asset framework, Stand With Crypto is seeking to address what it views as an immediate barrier to adoption: the ability of consumers to move funds freely between bank accounts and regulated crypto exchanges.