The climate in the United Kingdom is not looking favorable for crypto companies following the collapse of several banks over the past few weeks.
According to media outlet Bloomberg, crypto companies face many obstacles in accessing services of banks such as deposits and withdrawals. Only a few banking companies are offering their services with crypto firms, but they are also raising legal formalities such as how crypto firms monitor their customers’ transactions.
After several crypto friendly bank fell into crises in the past few days, crypto companies took the issue directly to the government along with the Prime Minister of the United Kingdom, Rishi Sunak. The crypto firms informed the authorities about the difficulties ranging from application rejection to bank account blocks and paperwork overload.
The decision runs contrary to Rishi Sunak’s aspirations to spur fintech technology innovation and turn the United Kingdom into a major crypto hub.
Tom Duff-Gordon, crypto exchange Coinbase’s vice president of international policy stated that “the UK banking reaction has been more acute than the EU one.” He also emphasised on banks in other nations are becoming more welcoming to cryptocurrency companies as a result of the European Union’s attempts to create an organised framework for digital assets.
The crash of crypto friendly banks has left crypto investors and speculators in trouble. A rising number of banks in the U.K. have increasingly imposed regulation on digital assets and its service providers, including HSBC Holdings and Nationwide Building Society, which barred retail customers from buying cryptocurrencies using credit cards prior to March.
Also read: UK Government to Establish a New Multi-Agency Crypto Cell
