The trade association said many banks in the U.K. have moved to impose blanket bans on dealing with crypto firms, “rather than taking a risk-based and case-by-case approach.”
Self-regulatory industry association CryptoUK has proposed providing a “white list” of UK-registered companies to address the issue of banks restricting or banning transactions with crypto companies.
In a separate letter to U.K. Economic Secretary Andrew Griffiths and members of the Financial Conduct Authority and the Payment Systems Regulator on March 21, CryptoUK said that many banks have begun to impose blanket bans on dealing with crypto companies “rather than taking a risk-based and case-by-case approach.” The proposed whitelist would allow registered cryptocurrency companies to freely transact with banks without the threat of restrictions or bans.
“Many major UK banks have now implemented bans or restrictions, and we are concerned that other banks and payment service providers (PSPs) may soon follow suit,” CryptoUK said. “We believe government action is now necessary.”
According to the UK Financial Conduct Authority, cryptocurrency service providers in the country must register and comply with anti-money laundering regulations. Some UK banks, including HSBC Holdings and Nationwide Building Society, have reportedly banned retail customers from using credit cards to buy cryptocurrencies.
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The CryptoUK proposal echoes concerns raised by digital asset advocacy groups and lawmakers in the U.S. following the collapse of crypto-friendly Silvergate Bank, Silicon Valley Bank, and Signature Bank. The U.S.-based Blockchain Association submitted information requests to the Federal Deposit Insurance Corporation, the Federal Reserve Board, and the Office of the Comptroller of the Currency related to the potential “debanking of crypto companies.”
