The majority of UK institutions continue to be risk-averse with regard to cryptocurrency, with many of them prohibiting any and all interactions.
Nevertheless, the market is irresistible. The most recent data indicates that there are 420 million crypto users worldwide, with 3.7 million located in the United Kingdom, and a market capitalization of $1 trillion.
The government has recently announced plans to regulate the industry in order to capitalize on the “confidence, credibility, and regulatory clarity” of the current system, as it is estimated that approximately 10% of UK adults possess some form of crypto.
Cryptocurrency is a philosophical decision for certain users, as it represents a more democratic financial system that will power the metaverse and promote financial freedom.
For these consumers, crypto-friendly banks are a critical intermediary between traditional and modern financial systems. Additionally, they serve as a method for extracting “fiat” (crypto-speak for government-issued currency) and converting it into decentralized digital assets.
This article will investigate the UK banks that are presently classified as crypto-friendly, as well as their advantages and disadvantages. Additionally, we will discuss which financial institutions continue to exhibit the greatest degree of resistance.
The Most Crypto-Friendly Banks in 2024
Revolut
Revolut is by far the most exceptional challenger bank for crypto in 2024, as it permits transactions with exchanges for all account levels, including credit and debit cards and wire transfers.
Revolut is the preferred option for crypto enthusiasts due to its in-app crypto trading and staking opportunities.
The bank has been providing cryptocurrency since 2017 and regards it as an essential component of its offerings and strategy.
Monzo
Certainly, Monzo can be utilized for cryptocurrency transactions. Monzo identifies itself as a bank that is “crypto-friendly,” permitting crypto transactions to and from the majority of crypto exchanges.
It occasionally restricts a small number of transactions due to risk, as is the case with all regulated banks. The maximum daily transmission limit, as per current users, is £10,000, after which users are required to contact support.
Monzo’s assistance center is both informative and well-organized, and it can assist you in initiating your cryptocurrency journey.
The majority of investors have reported that they have not encountered any significant issues while using Monzo. Nevertheless, a limited number of individuals have reported that their accounts have been frozen. Monzo, like all institutions, employs an internal risk algorithm. Therefore, it is possible that a combination of factors contributes to users exceeding the threshold; however, this is a point to consider.
Xace
Xace was established with a specific objective: to establish a crypto-bank that is focused on e-sports, gaming, and technology. Nevertheless, they are not suitable for enterprises or individuals located outside of high-risk areas due to their uncompetitive fees.
The reason Xace is included in our list is that it is crypto-friendly; however, it is not designed for consumers. The majority of its clients are high-risk enterprises that may encounter challenges in obtaining a bank account with a more traditional financial institution.
Cashaa
Cashaa is distinguished by its emphasis on Bitcoin payments.
The bank enables you to establish Bitcoin payments for your business and convert your Bitcoin to fiat currency in an instant.
Cahsaa is also crypto-friendly in a more traditional sense, as it accepts purchases from credit and debit cards.
It is important to be aware that Cashaa imposes a fixed fee of 1% on each transaction.
Orounda
The bank, which is headquartered in Edinburgh, specializes in the provision of solutions for business accounts that are Crypto-friendly.
It is an excellent choice for businesses that engage in cryptocurrency transactions due to its SWIFT and SEPA wire transfer capabilities.
Royal Bank of Scotland
The acquisition of cryptocurrency from certain significant exchanges is technically permissible by the Royal Bank of Scotland.
Nevertheless, their boundaries are explicitly delineated.
From March 16, 2023, until further notice, they will restrict or block the number of Faster Payments and Debit Card transactions made to these exchanges through online banking and mobile applications to £1000 per day and £5000 in any 30-day period. The bank has implemented this measure in order to safeguard its clients from fraudulent actors who exploit the cryptocurrency trend to defraud them of millions of pounds on a monthly basis.
The use of their Credit and Charge Cards to purchase cryptocurrency is now also blocked by RBS. Personal, business, and commercial customers are subject to the aforementioned procedures.
RBS provides a comprehensive support center that includes a comprehensive summary of all the questions you may have regarding their policies and regular updates.
NatWest
NatWest, which is owned by the same entity as RBS, has revised its crypto policy. Cryptocurrency exchanges are subject to a daily limit of £1000 and a 30-day payment limit of £5000 under the new policy. In order to safeguard consumers from incurring substantial losses, the bank is implementing these measures.
In addition, NatWest has set up a help center to address any inquiries regarding cryptocurrency.
Additionally, they have prohibited the utilization of Natwest Credit and Charge Cards for cryptocurrency acquisition.
Nationwide
Debit card purchases are still supported by Nationwide, and free withdrawals and deposits to and from crypto exchanges are permitted. Nevertheless, they implemented modifications as of 2023.
Nationwide has revised its crypto policy to establish restrictions on the purchase of cryptocurrency through Faster Payments and debit card transactions (including those made from a digital wallet like Apple Pay or Google Wallet). Depending on the sort of account held, daily limits have been implemented for payments made from current accounts to purchase cryptocurrency.
The daily limit for FlexOne account holders is £100, while it is £5,000 for adult or student accounts. The transaction will be rejected if the expenditure limit is exceeded.
Furthermore, the Faster Payments Service will impose a daily limit of £5,000 on remittances from current accounts. Nationwide has discontinued the acceptance of credit card payments for cryptocurrency purchases.
Nationwide, like the majority of crypto-friendly institutions, has prohibited transactions with Binance until further notice.
Barclays
Is Barclays Bank crypto-friendly?
Barclays needed some time to establish its footing in the cryptocurrency market. In early 2018, the bank formed a partnership with Coinbase, but it subsequently terminated the partnership in 2019. The bank cited a “pilot program that had simply run its course” as the reason for its decision.
Nevertheless, Barclays continues to permit credit and debit expenditures, as well as payments from and to crypto exchanges.
Additionally, the bank ensures that transactions are regulated in accordance with the protection of the exchanges.
Wirex
Wirex is not a conventional bank account; rather, it is a payment application that simplifies the process of purchasing cryptocurrency. It offers a diverse selection of plans, including a complimentary option, and allows users to accumulate additional cryptocurrency by upgrading their plans. Wirex also introduces its own token, WXT, which enables interaction with decentralized finance (DeFi) opportunities and other cryptocurrency features.
Juno
Another alternative financial platform that is specifically designed for the crypto and blockchain community is Juno, which is not a bank. It provides specialized accounts that include a trading platform for crypto assets, savings accounts that are customized for cryptocurrency holdings, and crypto-backed loans. Furthermore, Juno improves the crypto holding experience by offering staking services, which provide rewards to users who maintain their cryptocurrencies, thereby encouraging longer-term investments.
Juno’s debit card is a notable feature that serves as a bridge between traditional and digital finance. This card enables users to link their fiat and crypto accounts, thereby enabling the seamless use of cryptocurrencies in everyday transactions, similar to conventional fiat currencies.
Why UK banks are blocking transfers to and from crypto exchanges
As of 2023, numerous high-street institutions in the United Kingdom are restricting payments to and from significant cryptocurrency exchanges, including Binance and Coinbase, as a result of the heightened security concerns that arise following the collapse of the FTX exchange.
This has resulted in numerous individuals being unable to withdraw funds from their accounts, despite the fact that they have been doing so on a regular basis for many years.
Despite the fact that this may be perceived as a protective strategy on the part of banks, who may face significant fines from regulators for condoning practices that are perceived as risky for consumers, it leaves many crypto users with no alternative but to establish a new bank account in order to withdraw their funds.
Crypto-friendly banks, such as Revolut, are attracting a significant number of new clients in order to enable users to withdraw their funds securely.