The British banking sector is taking a stand against cyber-crime by preventing customers from making cash transfers to crypto exchanges.

Banks claim that trading platforms such as Binance, Kraken, and Coinbase do not perform adequate security checks to prevent criminals from using said platforms to launder money.

Fraudsters are also using crypto exchanges to transfer and convert victims’ money into untraceable cryptocurrencies.

The FCA recently reported that UK consumers had lost more than £60 million due to social media investment scams in the past year.

Kraken and Binance have refuted the claims made by UK banks, saying that they take the responsibility of protecting users from fraud very seriously.

The number of UK banks banning their customers from buying cryptocurrencies is increasing, with the likes of Barclays, Monzo and TSB being the latest to take a stand.

I have a Coinbase, Binance and Kraken account, so I put this to the test.

I transferred funds from my personal Barclays account to Kraken and had no problems, my account was funded successfully, and I was able to withdraw back to my account without any issues. Halifax, on the other hand, blocked me from moving money to Coinbase and Binance, so did Natwest.

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What UK banks have banned crypto buying, and what banks allow it?

Let’s take a look at some of the UK banks preventing customers from buying, selling or even receiving cryptocurrencies from crypto biggies Kraken, Binance and Coinbase.

One thing to note is that banks will not involve themselves if you are buying cryptocurrencies from FCA regulated companies such as eToro.

eToro is considered safe because its UK arm is regulated by top-tier financial authorities and it is a well-known fintech company.

Natwest

Business Banking: Prohibited
Personal Banking: Under Review, Binance Prohibited

Natwest will not accept and will terminate its business relationship with any UK business receiving or thinking of accepting crypto as a form of payment. They have also warned personal banking customers that they will conduct extra financial crime checks on those who want to dabble in cryptocurrencies. Binance transfers have been strictly prohibited.

Barclays

Business Banking: Under Review
Personal Banking: Under Review

Although Barclays has begun taking measures to ban crypto buying, it seems they are currently only blocking money transfers to some exchanges including Binance and SwissBorg. Barclays were in business with Coinbase until 2019 but ended the working relationship due to money laundering concerns.

TSB

Business Banking: Prohibited
Personal Banking: Prohibited

TSB recently announced plans to ban all 5 million customers from transferring payments to all crypto exchanges, including Binance and Kraken.

Monzo

Business Banking: Prohibited
Personal Banking: Prohibited

Monzo has barred customers from buying or selling cryptocurrencies from any exchange.

Starling Bank

Business Banking: Under Review
Personal Banking: Under Review

Starling Bank initially decided to suspend all payments to crypto exchanges; however, the digital bank has said it will resume cryptocurrency exchange transfers on June 23 2021, after a rigorous enhanced payment review.

Lloyds Bank

Business Banking: Prohibited
Personal Banking: Prohibited

Lloyds bank has distanced itself from crypto and does not allow customers to send or receive funds from any crypto exchange. This also extends to Halifax and Bank of Scotland.

HSBC

Business Banking: Prohibited
Personal Banking: Prohibited

HSBC strictly prohibits customers from sending or receiving money from any crypto exchange. They have recently also stopped allowing customers using HSBC credit cards to fund their accounts.

Santander

Business Banking: Prohibited
Personal Banking: Prohibited

Santander strictly prohibits customers from sending or receiving money from any crypto exchange.

Metro Bank

Business Banking: Prohibited
Personal Banking: Prohibited

Like Natwest, Metro Bank will not do business with any company accepting cryptocurrencies. The bank will also close personal accounts with a high volume of transactions from and to crypto exchanges.

Nationwide

Personal Banking: Under Review, Binance Prohibited

Unlike all other high street banks, Nationwide remains one of the very few that have not put any restrictions in place (says their website) except for transfers to Binance. However, the bank has stressed that it will review any unusual activity including payments to crypto exchanges.

Virgin Money

Virgin Money has been blocking customers from purchasing crypto on their credits cards as far back as 2018 and the restriction remains in place.

Tesco Bank

Although Tesco Bank is closing down all its current account offerings, it will still be offering credit cards, loans and insurance products. Tesco recently said anyone using their Tesco credit cards to fund Crypto trading accounts will be blocked.

Regulation

Until there is clear clarity and regulation, investors will continue to face restrictions from buying or selling cryptocurrencies in the UK. The FCA has banned Binance from conducting any “regulated activity” in the UK.

Talk To Us

Have you experienced any problems with transferring funds to and from any crypto exchanges from your bank? Let us know below.

Disclaimer: Cryptoassets are high volatile unregulated investment products. No EU investor protection. Your capital is at risk.

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