Crypto-friendly banks are financial institutions that facilitate interactions with cryptocurrency exchanges with minimal restrictions.
As a customer at a crypto-friendly bank, you should be able to:
- Execute payments to a crypto exchange
- Acquire cryptocurrency using your debit card
- Transfer funds from your crypto wallet to your current account
Banks that accommodate these actions are considered crypto-friendly, as they create a bridge between the traditional financial world and the crypto realm.
Understanding the Crypto Landscape in the UK
Contrary to popular belief, cryptocurrency is not completely unregulated in the UK. The Financial Conduct Authority (FCA), the UK’s financial watchdog, has issued guidelines on cryptocurrencies, advising banks to block transactions to and from any crypto exchanges they deem high-risk. Consequently, many banks have stopped payments to certain trading platforms.
Crypto-Friendly Banks in the UK: The Top Contenders
1. Revolut
Revolut is a trailblazer in the digital banking realm, popular for its progressive stance towards cryptocurrencies. The banking app allows direct dealing with cryptocurrency, streamlining the entire exchange process. More crucially, Revolut safeguards your digital assets in cold storage with trusted custodians, helping to protect your private keys.
2. Monzo
Monzo, another online bank, shares a similar crypto-friendly reputation to Revolut. Although you can’t purchase crypto directly within the app, Monzo facilitates transactions to and from most crypto exchanges.
3. Royal Bank of Scotland (RBS)
RBS extends support to customers intending to transact through cryptocurrency exchanges. Customers generally face no issues in buying crypto with their debit cards or direct transfers to wallets or exchanges. However, RBS does flag some exchanges they regard as high risk.
4. Lloyds Bank
Lloyds Bank strikes a balance when it comes to crypto. Customers can make payments to crypto exchanges using their debit card or current account. However, credit card payments are subject to restrictions.
Crypto-Friendly Banks in the UK: The Top Contenders
British pounds, commonly referred to as GBP or £, is the official currency of the United Kingdom. It holds a prominent position in the global financial market and is widely used for various transactions, both domestically and internationally.
Banks in the UK Unfriendly to Cryptocurrency
While some banks have embraced cryptocurrencies, others have taken a conservative approach. Some banks that do not support cryptocurrency in any form include:
- First Direct
- HSBC
- Santander
- Starling Bank
- TSB Bank
These institutions typically block all transactions to and from crypto exchanges and other crypto platforms.
Why UK Banks Block Transfers to Crypto Exchanges
Many UK high street banks block payments to and from significant cryptocurrency exchanges due to heightened security concerns. This protective strategy can leave many crypto users with no choice but to open a new bank account to withdraw their funds.
Crypto-Friendly Banks: The Verdict
The crypto landscape is evolving, and so is the banking sector’s approach to it. While the crypto-friendly banks mentioned above facilitate a seamless experience for crypto users, it’s essential to assess your individual needs and conduct thorough research before committing to a bank.
Navigating the world of crypto-friendly banks in the UK requires a solid understanding of both the traditional banking system and the dynamic crypto space. This article serves as a starting point in your journey towards finding a bank that aligns with your cryptocurrency needs.
