Most UK banks remain risk-averse to cryptocurrency, with many prohibiting interactions altogether.
Despite this, the market can’t be ignored. With a $1 trillion market capitalisation, the latest data suggests there are 420 million crypto users worldwide, with 3.7 million in the UK alone.
It is thought some 10% of UK adults hold some form of crypto and, as such, the government has recently announced plans to regulate the industry to benefit from the “confidence, credibility and regulatory clarity” of the existing system
For some users, crypto represents a philosophical decision, a more democratic financial system that will power the metaverse and promote financial freedom.
Crypto-friendly banks are an essential middle ground between the old and new financial systems for these users. They’re also a means to extract ‘fiat’ (crypto terminology for government-issued currency) and transform it into decentralized digital assets.
This article will explore which UK banks currently classify as crypto-friendly, including their pros and cons. We’ll also cover which banks remain the most resistant.
Our Top Pick: The Bank Most Likely to Accept Cryptocurrency is Revolut!
Our Verdict on the Best Crypto-Friendly Banks.
What are the UK’s top Crypto-Friendly Banks?
Revolut
Revolut is easily the best challenger bank for crypto in 2023, allowing transactions with exchanges for all account levels, from credit and debit cards to wire transfers.
Revolut also offers in-app crypto trading and staking opportunities, making it the number-one choice for crypto enthusiasts.
They’ve been offering crypto since 2017 and consider it a core part of the bank’s offering and direction.
Why Choose Revolut for crypto?
- Purchase 90+ tokens with 30+ currencies
- Use Revolut as a bridge to send money to crypto-exchanges
- Safety-Oriented (Revolut stores crypto assets with a custodian where the customer is the beneficial owner)
- Credit and Debit Purchases
- In-App Crypto Trading
- Staking Features
- SWIFT and SEPA Transfers
- Make purchases and pay bills via the “spend from crypto” feature.
- Free “Learn & Earn” courses educate users about blockchain and reward users who complete the program with free crypto
- Revolut is scoping the market conditions before launching its own native ‘RevCoin’ in the coming months
- Easily send money to exchanges like Coinbase
- Does not charge any deposit or withdrawal fees for moving money on and off the platform (which many exchanges do)
Reasons to Avoid
- You can’t move your tokens outside of the platform
- 1.5% fee per trade
Crypto Transaction Fee – 1.49% for premium and metal users.
Monzo
Monzo describes itself as a crypto-friendly bank, allowing crypto transactions to and from most crypto exchanges.
Like every regulated bank, it sometimes blocks a small number of transactions based on risk.
Monzo help centre is clear and informative and can help you get started with cryptos.
Most investors have reported having used Monzo without any significant issues.
Why Choose Monzo for crypto? If you’re looking for a challenger bank that’s simple to use and crypto-friendly but security oriented, you might want to take a look at Monzo.
Currency Conversion fee – 1%.
Xace
Xace was created with a clear intent: a crypto-bank oriented toward tech, gaming and e-sport. However, they are not appropriate for individuals or businesses outside high-risk areas because their fees are not competitive.
Xace makes our list because it is crypto-friendly, but it’s not geared towards consumers. Its customers are almost all high-risk businesses which might have difficulty finding a bank account with a more conventional bank.
Why Choose Xace for crypto? Xace is a great choice if you’re an actual crypto company seeking a bank account from which to run your business or a high-risk business wishing to invest in crypto.
- Accepts Transactions to and From Crypto-Exchanges
- Direct Debits and virtual debit cards
- offers SEPA (but not SWIFT) via Clearbank
- can send money to European-based crypto exchanges
- FCA regulated
Fees – Based on your account type and your level of risk.
Cashaa
The particularity of Cashaa is that it is oriented toward Bitcoin payments.
The bank allows you to instantly set up Bitcoin payments for your business and convert your Bitcoin to fiat currency.
Cahsaa is also crypto-friendly in a more classical fashion, accepting purchases from credit and debit cards.
Something to be aware of: Cashaa charges a flat fee of 1% on every transaction.
Why Choose Cashaa for crypto? Cashaa is the ideal solution if you accept Bitcoin as payment.
- Supports over 70 Currencies
- Accepts Transactions to and From Crypto-Exchanges
- Safety-Oriented
- SEPA, SWIFT and Faster Payments transfers
Flat fee – 1%.
Orounda
The Edinburgh-based bank specialises in solutions for crypto-friendly business accounts.
Its SWIFT and SEPA wire transfer makes it a solid option for businesses that operate in cryptocurrencies.
Why Choose Orounda for crypto? If you’re a business accepting crypto payments and want a seamless experience, go for Orounda.
- EU and IBAN Accounts
- User-Friendly Online banking
- International Transfers
Royal Bank of Scotland
Royal Bank of Scotland does, technically, allow the purchase of crypto from some major exchanges.
However, they have clearly defined limits.
Starting from 16th March 2023, they will block or limit online banking and mobile app Faster Payments and Debit Card transactions made to these exchanges to £1k a day and £5k in any 30-day period until further notice. The bank has taken this step “to protect its customers from fraudsters exploiting the cryptocurrency trend to scam people out of millions of pounds per month.”
RBS also now block the use of their Credit and Charge Cards to purchase cryptocurrency. The above steps apply to Personal, Business and Commercial customers.
RBS offers a detailed support centre listing every question you may ask about their policies and regular updates.
Why Choose RBS for crypto? Royal Bank of Scotland is a safe choice if you want to trade in cryptocurrencies while still in a traditional banking ecosystem.
- Accepts Transactions to and From Crypto-Exchanges
- Credit and Debit Purchases
- Safety-Oriented
- User-friendly Help Centre
Cash Advance Fee – 3%.
NatWest
Owned by the same ground as RBS, NatWest has updated its crypto policy. The new policy imposes a daily limit of £1000 and a 30-day payment limit of £5000 to cryptocurrency exchanges. The bank is taking these steps to prevent customers from losing significant amounts of money.
NatWest has also set up a help centre for any crypto-related questions.
Why Choose NatWest for crypto? Just like with RBS, choosing to go with NatWest will guarantee a safe environment to trade in cryptocurrencies without worrying too much about the risks.
- Accepts Transactions to and From Crypto-Exchanges (with limits)
- Credit and Debit Purchases
- Safety-Oriented
- User-friendly Help Centre
Nationwide
Nationwide still supports debit card purchases and allows free withdrawals and deposits to and from crypto exchanges. However, as of 2023, they have made some changes.
Nationwide has updated its crypto policy by now setting limits on buying cryptocurrency using Faster Payments and debit card payments (including from a digital wallet, such as Apple Pay or Google Wallet). Daily limits have been introduced for payments made from current accounts to purchase cryptocurrency, depending on the type of account held.
The daily limit for adult or student accounts is £5,000, while for FlexOne account holders, it is £100. If the spending limit is exceeded, the transaction will be declined.
Additionally, transfers made from current accounts using the Faster Payments Service will have a daily limit of £5,000. Nationwide no longer allows credit card payments for purchasing cryptocurrency.
Like most crypto-friendly banks, NationWide banned transactions with Binance until further notice.
Why Choose Nationwide for crypto? Nationwide is highly focused on its customers’ safety, only allowing secure, regulated, licensed digital asset exchanges.
- Accepts Transactions to and From Crypto-Exchanges (with limits)
- Safety-Oriented
Barclays
Is Barclays Bank crypto-friendly?
Barclays took a bit of time to find its stride: eager to be proactive in cryptos, the bank partnered with Coinbase in early 2018 but cancelled it in 2019, justifying its choice by mentioning a “pilot program that had simply run its course”.
However, Barclays still allows payments from and to crypto exchanges and credit and debit purchases.
The bank also makes sure to regulate transactions based on the exchanges’ levels of safety.
Why Choose Barclays for crypto? Barclays is the right choice if you want to rely on one of the biggest investment banks in the country. Furthermore, the bank has always given signs they were actively taking part in crypto payments and transactions, with a will to do even more in the future.
- Accepts Transactions to and From Crypto-Exchanges
- Safety-Oriented
- Credit and Debit Purchases
Non-Sterling Transaction fee – 2.99%.
What is a Crypto-Friendly Bank?
A crypto-friendly bank is a bank that allows some or all of the following:
- Allows customers to transfer money to a centralised cryptocurrency exchange like Binance, Coinbase or Kraken.
- Allows customers to buy, sell, and hold digital assets directly
- Provides the ability to transfer funds between cryptocurrency wallets.
- Allows users to purchase cryptocurrency using a debit or credit card
What Makes a Bank Crypto-Friendly?
The term “crypto-friendly” can cover several aspects, from accepting cryptocurrency transactions to actively investing in blockchain and its development. So, what are we talking about?
We believe a crypto-friendly bank should be about reliability and consistency.
We focused on the following criteria to establish our guide:
| Feature | Criteria |
|---|---|
| Acceptance | Does the bank allow its customers to buy, sell, or store cryptocurrencies? Does it accept every cryptocurrency? From a debit account? A credit account? Wire transfer? |
| Regulation | Does the bank have favourable policies and regulations regarding cryptocurrencies, such as minimal restrictions on crypto transactions and low fees for crypto-related services? |
| Integration | Does the bank have partnerships or integrations with popular cryptocurrency exchanges to allow its customers to buy and sell crypto directly from their bank accounts easily? |
| Awareness | Does the bank monitor the market and adjust its restrictions to prevent customers from being exposed to unsafe exchanges and practices? |
Which UK banks are not crypto-friendly?
Almost half the UK’s banks do not support cryptocurrency in any form, with most regulated banks blocking some transactions and exchanges.
Banks unfriendly to crypto include:
- First Direct
- Lloyds
- Metro Bank
- Halifax
- HSBC
- Santander
- Starling Bank
- The Co-operative Bank
- TSB Bank
- Virgin Money
- Wise
- Fire (Ireland)
Why UK banks are blocking transfers to and from crypto exchanges
As of 2023, many UK high street banks are blocking payments to and from major cryptocurrency exchanges such as Binance and Coinbase due to increased security concerns post the collapse of the FTX exchange.
This has left many unable to withdraw the funds from their accounts, despite having done some routinely for many years.
While this can be seen as a protective strategy on behalf of banks, who can be fined heavily by regulators for condoning practices perceived as risky for consumers, it leaves many crypto users with no choice but to open a new bank account if they want to get their money out.
In this scenario, crypto-friendly banks like Revolut are picking up a lot of new customers so users can withdraw their funds safely.
Original source: https://www.businessexpert.co.uk/business-banking/crypto-friendly/
