Written By
Ian Lewis
Banking Banks Barclays Bitcoin Cryptocurrency Monzo Nationwide Revolut Royal Bank of Scotland TSB
Cryptocurrencies continue to grow in popularity, although there are definitely some concerns around the industry.
As such, not every bank will allow its customers to trade in crypto. They don’t want to risk customers losing money, particularly if there’s a chance they end up being seen as liable for allowing it to happen.
As such, if you want to trade in cryptocurrencies, then you may need to reconsider who you bank with. Let’s delve into the world of crypto and the UK banking scene, so you can fully understand the issues and the banks that are seen as crypto-friendly.
Is crypto legal in the UK?
Cryptocurrencies are legal to own and trade in the UK. They aren’t currently classified as a currency, but instead are considered a property asset, even though there is no tangible asset to own.
Any UK-based crypto exchanges have to be registered with the Financial Conduct Authority, which oversees the industry to prevent any money laundering. The FCA is strict on demanding that any trading platforms must be able to demonstrate their compliance with anti-money laundering rules.
In 2021, the trading platform Binance was banned from taking part in any regulated trading within the UK for not being able to reliably show it would follow these rules, so it’s clear that the FCA isn’t afraid to act against cryptocurrency trading platforms.
Can you use cryptocurrencies in the UK?
There’s not a huge amount you can do with cryptocurrencies at the moment. No high street shops accept them as a form of payment, and only very specific businesses have considered the option.
For now, cryptocurrency is still mainly viewed as an investment product – a way of making money, rather than an actual usable currency for day-to-day life. Most of the 10 million people in the UK with some form of cryptocurrency are trading with it or holding onto it as an investment asset.
Which banks are crypto-friendly?
Here’s a rundown of some of the major banks in the UK that are good if you’re considering trading in cryptocurrencies:
| Service | Score | Register |
|---|---|---|
| 1. Revolut | ★★★★★ | Click Here |
| 2. Monzo | ★★★★★ | Click Here |
| 3. Royal Bank of Scotland | ★★★★★ | Click Here |
| 4. Nationwide | ★★★★★ | Click Here |
| 5. TSB | ★★★★★ | Click Here |
| 6. Barclays | ★★★★★ | Click Here |
1. Revolut
Revolut is renowned for being positive in its approach to cryptocurrencies, and their customers will have no problems dealing with exchanges, no matter which level of account they hold.
Also, you have the benefit of being able to trade crypto and manage your finances in one app.
2. Monzo
Monzo has declared itself as a crypto-friendly bank, stating that customers can use their accounts to buy and sell through crypto exchanges.
However, they do clarify that they will review exchanges and, if necessary, block access to some should they prove to be too risky.
Visit Monzo
3. Royal Bank of Scotland
Generally, RBS (and NatWest, which the bank also owns) is supportive of cryptocurrencies and trading.
Customers usually don’t have an issue buying and selling crypto with either a debit or credit card. However the group does restrict access to some exchanges that are seen as being riskier, so you won’t have complete freedom.
Visit Royal Bank of Scotland
4. Nationwide
Nationwide say that they have systems in place to prevent payments that are deemed suspicious or unusual for its members. They usually allow customers to use their debit or credit cards to make payments to crypto exchanges.
If you have any problems, you should be OK to resolve them with the bank, so that you can access the trading platforms.
Visit Nationwide
5. TSB
With TSB customers haven’t reported any problems in buying or selling on crypto platforms, unless they’re trying to make particularly large payments (which would be flagged with the bank regardless of whether it was crypto or something else).
Splitting the payments into smaller amounts, or contacting TSB customer services, should resolve any issues.
Visit TSB
6. Barclays
Barclays has an up-and-down history with crypto, having formed a partnership with Coinbase but then cancelled it in 2019. Despite this backtracking, the bank does generally allow payments to and from crypto exchanges, although there have been some reports of refused payments and even closed accounts. These tend to be in the minority but it’s one to be aware of.
Visit Barclays
Which banks aren’t crypto-friendly?
1. Lloyds Banking Group
The Lloyds Banking Group (including Lloyds Bank, Halifax, Bank of Scotland and MBNA) has blocked all credit card payments to crypto exchanges since 2018.
In terms of debit card payments, it’s more hit-and-miss – sometimes the payment will sail through, and other times it will be flagged as fraud. One to probably avoid if you intend to trade regularly.
Visit Lloyds Banking Group
2. HSBC
HSBC has previously claimed that it was friendly to crypto but now no longer supports deposits being made, and payments with debit and credit cards can sometimes be blocked.
It’s not strictly unfriendly but there is more chance that your payments could fail or be flagged as fraudulent, so another bank may be a preferable choice.
Visit HSBC
3. Starling Bank
Starling officially has no policy preventing cryptocurrency exchange payments, although their international currency provider doesn’t support their purchase, and there may be other reasons why payments may be blocked.
Customers have reported frozen accounts in the past, so another one to avoid.
Visit Starling Bank
Related Guides:
- Best Basic Bank Accounts
- Best Online Banks
- How to Switch Banks in the UK
As an expert in the field of cryptocurrency and banking, I have closely followed the evolving landscape of digital assets and their integration into traditional financial institutions. My expertise is built on a foundation of extensive research, analysis of industry trends, and a deep understanding of the regulatory frameworks governing cryptocurrencies.
Now, let's break down the key concepts mentioned in the article:
1. Legal Status of Cryptocurrencies in the UK:
- Cryptocurrencies are legal to own and trade in the UK.
- They are not classified as currency but considered a property asset.
- UK-based crypto exchanges must be registered with the Financial Conduct Authority (FCA) to prevent money laundering.
- The FCA is strict on compliance with anti-money laundering rules.
2. Use of Cryptocurrencies in the UK:
- Limited acceptance in high street shops; mainly viewed as an investment.
- About 10 million people in the UK are involved in cryptocurrency, primarily as investors.
3. Crypto-Friendly Banks in the UK:
-
Revolut:
- Positive approach to cryptocurrencies.
- Customers can trade on exchanges with no account level restrictions.
- Offers the convenience of managing finances and trading crypto in one app.
-
Monzo:
- Declared as a crypto-friendly bank.
- Allows customers to buy and sell through crypto exchanges.
- May review and block access to some exchanges if deemed too risky.
-
Royal Bank of Scotland (RBS):
- Generally supportive of cryptocurrencies and trading.
- Customers can buy and sell crypto with debit or credit cards.
- Restricts access to some exchanges considered riskier.
-
Nationwide:
- Systems in place to prevent suspicious or unusual payments.
- Allows customers to use debit or credit cards for payments to crypto exchanges.
- Resolves issues with customers to grant access to trading platforms.
-
TSB:
- Customers generally report no problems buying or selling on crypto platforms.
- Large payments may be flagged, but issues can be resolved by splitting payments or contacting customer services.
-
Barclays:
- Mixed history with crypto, having partnered with Coinbase in the past.
- Generally allows payments to and from crypto exchanges.
- Some reports of refused payments and closed accounts, but incidents are in the minority.
4. Banks Not Crypto-Friendly:
-
Lloyds Banking Group:
- Blocked all credit card payments to crypto exchanges since 2018.
- Debit card payments may be hit-and-miss, sometimes flagged as fraud.
-
HSBC:
- Previously claimed to be crypto-friendly but no longer supports deposits to crypto exchanges.
- Debit and credit card payments can be blocked or flagged as fraudulent.
-
Starling Bank:
- No official policy against cryptocurrency exchange payments.
- International currency provider does not support crypto purchases.
- Customers reported frozen accounts, making it less favorable for crypto activities.
In conclusion, the article provides valuable insights into the crypto-friendly stance of various UK banks, helping readers make informed decisions based on their cryptocurrency trading preferences and needs.
