Traditional UK banks have recently tightened their stance on cryptocurrency-related activities, resulting in numerous account closures and stricter policies. This shift in the financial landscape has prompted around 38% of crypto investors in the UK to switch banks.
This significant migration is a direct response to the newly imposed, stringent cryptocurrency regulations.
Investor Response to Stricter Policies
The report, released on October 19 by Recap, reveals that 38% of UK investors have already changed their banks due to these cryptocurrency-related policies. Another 22% have contemplated doing the same.
To understand how much of an impact banking has on the crypto community, Recap issued a poll across Reddit, Twitter and LinkedIn to identify the public’s feelings about the regulation changes at banks.
One respondent even shared the extreme experience of having their entire bank account, including cards and mobile banking services, blocked because of a substantial cryptocurrency-related transaction. Some have opted to change their crypto exchange platforms to align with more bank-friendly options.
Global Crackdown and Its Impact
Dan Howitt, reporting for Recap, presents these findings, attributing the motive to a broader global crackdown on the cryptocurrency industry. The primary concerns driving this crackdown include perceived high-risk investments, fraud, and money laundering.
“Since the collapse of FTX, one of the biggest crypto trading venues, many banks have taken extra precautions to protect their customers.”
A notable contributor to these banking precautions is the recent collapse of FTX, one of the prominent crypto trading venues. This incident has encouraged banks to take extra precautions to safeguard their customers.
Newly Imposed Banking Policies
In response to these newly implemented banking policies, there have been reports of restrictions on transactions to and from centralised exchanges, limits on investment amounts, and the closure of customer accounts actively involved in digital asset trading.
These measures have led to growing discontent within the crypto community, prompting nearly 40% of enthusiasts to switch to more accommodating banks.
The increasing demand for crypto-friendly banking services is undeniable. Crypto enthusiasts are actively seeking flexibility in managing their digital assets.