UK Banks Hit With 10,000 Complaints Over Blocked Crypto Transfers in 90 Days: Report

10,092 Complaints

Stand With Crypto, a crypto advocacy group, recently published a report detailing a significant surge in complaints from UK bank customers regarding blocked or restricted transfers to crypto exchanges. Over a mere 90-day period, between May and August 2026, a staggering 10,092 complaints were filed by 9,803 individuals. This widespread issue affected customers across all 650 of the UK's parliamentary constituencies, underscoring the pervasive nature of the problem rather than isolated incidents.

The complaints specifically concerned transfers to platforms registered with the Financial Conduct Authority (FCA), the UK's financial regulator. This detail is crucial, as it indicates that even legitimate and regulated crypto businesses are facing substantial hurdles in accessing traditional banking services. The report's findings echo earlier concerns, including a 2025 FCA and YouGov survey where 13% of UK crypto users reported problems withdrawing crypto to their bank accounts, and a January survey by the UK Cryptoasset Business Council estimating that banks were blocking or delaying around 40% of transfers to the country's 10 largest exchanges, with one exchange reportedly seeing close to £1 billion in declined transactions over a year.

Lloyds Banking Group

Among the banks, Lloyds Banking Group, which includes Halifax and Bank of Scotland, received the highest number of complaints, totaling 2,297, or over 22% of the total. This is particularly notable given that Lloyds has no publicly published policy restricting crypto transfers, suggesting a lack of transparency or inconsistent application of internal rules. Other major banks also faced significant complaints, with Barclays receiving 1,569 and NatWest Group, including Royal Bank of Scotland, accumulating 1,278. HSBC UK also recorded more than 1,000 complaints.

Banks employ various strategies regarding crypto transfers. Some, like Barclays, NatWest, and Santander UK, impose specific daily or monthly limits on transactions. For instance, Barclays caps transfers at £2,500 per transaction and £10,000 every 30 days, while NatWest limits them to £1,000 a day and £5,000 every 30 days. In contrast, other institutions such as Starling, TSB, Chase UK, Metro Bank, Virgin Money, and the Co-operative Bank have implemented outright bans on crypto transfers.

A Barclays spokesperson justified these measures by stating that the protection of customer funds is their highest priority, citing the need to safeguard against crypto-related scams and losses. However, the Stand With Crypto report highlights a critical issue: customers cannot reliably use their bank's published policy to predict whether they will be able to transfer their own money to a crypto asset platform, leading to frustration and a perceived lack of fairness.

UK's Crypto Regime

The timing of this report is significant, as it precedes the implementation of the UK's new crypto regime next year. Stand With Crypto is actively urging the FCA and HM Treasury to publicly declare that sector-wide blocks and hard caps on transfers to registered or authorized crypto firms are disproportionate and unlikely to be justified by anti-fraud or financial crime rules. The advocacy group argues that firms that have secured authorization under the new regime should be assured they will not face blanket barriers from other regulated entities.

This issue has also garnered attention from political figures and parliamentary bodies. Reform UK leader Nigel Farage has pledged to outlaw banks from denying services to customers over their involvement with crypto if he becomes prime minister, indicating the growing political salience of banking access for crypto users. Furthermore, Parliament's Crypto and Digital Assets All-Party Parliamentary Group launched an inquiry in July into crypto firms' access to bank accounts and services. Its co-chairs, Labour MP Gurinder Singh Josan and Lord Vaizey of Didcot, have written to major UK bank chief executives, warning that access to banking services "could be one of the single biggest barriers to growth" for UK crypto businesses.

To address these challenges, Stand With Crypto has put forth several recommendations. These include calling on banks to replace blanket restrictions with risk-based, case-by-case checks, to publish clear and plain-language policies on when crypto transfers may be blocked, and to provide customers with a mechanism to challenge or opt out of controls on transfers to FCA-registered providers. These proposals aim to strike a balance between consumer protection and fostering a supportive environment for the legitimate crypto sector within the UK.