Crypto companies are banned in the UK

We recently wrote that Binance no longer allows low-value bank transfers due to new requirements from the trading platform’s banking partner. The bank in question was Signature Bank, which went bankrupt shortly thereafter. Now it seems that more banks are not favoring crypto companies, Especially in the UK.

Are UK banks anti-crypto?

to write bloomberg Based on some interviews. Among the banks making transfers to crypto companies more difficult are HSBC and Natwest – and banks that still do business with companies in the sector require more documentation. Applications from companies are denied, accounts are blocked, and the amount of paperwork is overwhelming.

The situation is so dire that many crypto companies have complained to Prime Minister Rishi Sunak’s government. “The reaction from the UK banking system was much sharper than the EU,” said Tom Duff-Gordon, Vice President of Coinbase. The International Politics.

RSunak government pro-cryptocurrency?

One of Sunak’s main focuses was that he wanted to turn the UK into a cryptocurrency hub. He wanted favorable regulation and progressive talks with crypto companies. In fact, the British government wanted to launch an NFT chain with the Royal Mint.

In the fall of 2022, it became known that the British banking system was in trouble after the value of the bonds that the banks used as collateral fell sharply. As a result, the British pound was briefly more volatile than Bitcoin (BTC). This was positive for bitcoin at the time, but less positive for banks. It seems that now they want to protect themselves from the deteriorating conditions.

However, Sunak’s plan for non-fungible tokens (NFTs) is now in the works Also delete. The proposal will be put on hold for the time being as the tokens would be highly speculative. People will only want to buy them if they are willing to lose their investment. For now, the government seems to still be in favor of cryptocurrency, but the banks are not happy with the sector.

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Megan Vasquez

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