Stand With Crypto UK is calling on its 286,000 members to oppose UK banks restricting transfers to cryptocurrency exchanges, arguing that blanket restrictions on transactions on regulated platforms limit access to digital assets.
The new campaign cites a report by the UK Cryptoassets Business Council which found that 40% of crypto transactions are blocked or restricted by UK banks. The group argues that many of the restrictions apply to transfers involving exchanges registered with the state’s financial conduct authority and do not take into account individual client risk profiles.
According to the report, one exchange saw nearly £1 billion in declined transactions over a one-year period due to bank-side rejections, while 80% of platforms surveyed reported an increase in blocked or restricted transfers.
Stand With Crypto says members can file complaints through a tool on its website that generates letters challenging the transfer restrictions, and the banks’ responses are expected to inform the campaign’s next steps.
“Your money. Your choice.” is the slogan of the Stand With Crypto UK advocacy campaign.
Source: Be with Crypto UK on X.com
Mark Fairless, CEO of UK clearing bank ClearBank, told Cointelegraph that banks should take a risk-based approach to crypto-related payments rather than imposing broad sector-wide restrictions.
“Interventions should be targeted and proportionate, as broad blocks risk undermining competition and the ability of regulated companies to operate effectively in the UK,” Fairless said.
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Stablecoin rules remain a focus for UK policymakers
The campaign comes amid ongoing efforts by regulators to develop a UK-wide stablecoin framework.
In early May, a House of Lords committee examined proposed stablecoin regulations, and lawmakers questioned industry executives about the risks of going to banks, anti-money laundering controls and the potential impact of stablecoins on traditional banking.
Later that month, the Bank of England said it was reviewing proposed stablecoin holding caps and reserve requirements as it revised its framework for sterling-denominated stablecoins.
The review comes as regulators seek to support the growth of the domestic stablecoin market while limiting potential risks to bank funding and financial stability, with non-dollar stablecoins currently only a small part of the global market.
Total stablecoin market capitalization. Source: DefiLlama
In June, a House of Lords committee said certain proposed stablecoin requirements, including reserve and holding rules, could limit the viability of the pound-denominated tokens. The board urged regulators to avoid measures that could hinder the growth of the sector while finalizing the country’s stablecoin framework.
In addition to stablecoins, regulators have also advanced broader digital asset initiatives. In May, the central bank proposed extending opening hours for the country’s settlement infrastructure to support tokenized markets, while on June 8 the Financial Conduct Authority proposed allowing certain retail-focused investment funds to allocate up to 10% of their portfolios to crypto exchange-traded products.
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