Many UK high street banks are blocking payments to and from major cryptocurrency exchanges such as Binance and Coinbase.
Adrian Ip, managing director at Aqu, believes that this crackdown on crypto is due to the underlying reasons for this: banks are worried about losing out on profits from traditional financial products and services.
As we venture forth into 2023, will banks reverse their course and let crypto back in from the cold, or will they allow this infant industry to wither on the vine?
The stance UK banks are taking on cryptocurrency trading ranges from completely blocking customer access to just making it a lot harder.
Many customers of retail banks have become frustrated as some of the banks have not only banned money transfers to exchanges, but have also blocked withdrawals from exchanges into banks.
This locks user funds on exchanges such as Binance and Coinbase (COIN), leaving customers no other option but to find a bank that is still crypto-friendly if they want to convert their funds.
Banks are hesitant to embrace cryptocurrency due to the risks associated with it, according to Ip. He said that banks need to be careful about who they allow to interact with the cryptocurrency sector, as there is potential for consumer detriment. Ip added that the traditional financial ecosystem is heavily regulated, which is why banks are reluctant to change.
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