Crypto companies in the United Kingdom are feeling the heat as they encounter yet another roadblock on their path to financial freedom.
Banks are reportedly putting up a fortress of hurdles for these firms to jump over, with requests for additional documentation and transaction monitoring becoming the norm.
With Natwest and HSBC slashing the amount of funds customers can move to digital currency exchanges and Barclays freezing Binance transfers, the future of crypto in the UK is looking bleaker than ever.
While these regulations were aimed at making the industry safer and more transparent, they also made it harder for firms to operate in the UK.
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Crypto Firms’ Dreams Of A UK Hub Dashed By Restrictions
Digital currency companies in the UK are facing an uphill battle as they struggle to obtain essential banking services. With applications rejected, accounts frozen, and paperwork piling up, these firms are finding it harder than ever to operate in the country.
In a report by Bloomberg, these companies have reportedly turned to the government of Prime Minister Rishi Sunak, expressing their dissatisfaction with the dire situation.
Image: Coin Culture
The irony is not lost on the community, as Sunak has been vocal about his plans to make the UK a global hub for financial technology. However, the recent banking restrictions go against his vision, posing a significant threat to the digital currency industry’s growth and development in the UK.
The London Exodus
SavingBlocks, a London-based crypto passive portfolio firm, has joined a growing number of crypto companies struggling to obtain essential banking services in the UK.
According to Bloomberg, the firm applied for a corporate account with nine different banking providers, only to be rejected by seven of them. This is a daunting reality that is forcing companies to consider moving to more crypto-friendly countries.
Founder Edouard Daunizeau expressed his frustration, citing the lack of options available to companies in the UK, and the reluctance of traditional banks to provide essential banking services. SavingBlocks is not alone, with other crypto companies reportedly facing similar banking rejections and regulatory hurdles in the UK.
BTC total market cap currently at $547 billion. Chart: TradingView.com
Risk To The Fintech Sector’s Future
The banking restrictions are a major setback for companies in the region, who are already grappling with stringent regulations imposed by the Financial Conduct Authority.
The UK’s reluctance to embrace the crypto revolution is a significant loss for the country’s fintech sector. The lack of support and regulatory barriers will undoubtedly push firms away, depriving the region of the opportunity to be a leader in the digital currency space.
As companies continue to face banking rejections and regulatory hurdles, the UK’s exodus may prove to be a cautionary tale for other countries looking to attract crypto firms.
-Featured image from Phil McKinney