Banking and Crypto

It is well known that the main banks have problems with crypto, it is after all a threat to their existence. As a guide to assist investors looking for banking solutions, we have pulled together the information supplied by each bank. This information was current in February 2024 and is subject to change without notice.

Note: Nothing in this article constitutes advice or recommendation but the content that follows does provide a good starting point for your own research into this area.

High Street Banks

Barclays Bank does not offer any products or services related to cryptocurrencies, and it restricts the use of credit cards for purchasing or depositing funds in cryptocurrency exchanges. However, it allows transactions using debit cards and bank transfers to platforms regulated by the UK’s Financial Conduct Authority (FCA). Barclays Bank also permits its customers to send and receive funds from FCA-regulated exchanges, such as eToro. However, it has banned card payments for fund transfers to crypto exchange Binance, which is under investigation by the FCA.

NatWest Bank has imposed some restrictions on customers buying and selling cryptocurrency, citing the risk of scams and fraud. The bank has set a daily limit of £1000 and a 30-day payment limit of £5000 for transactions involving crypto exchanges. However, the bank allows customers to use NatWest online banking accounts or services to buy, sell, and trade crypto and other digital assets through regulated exchanges. NatWest Bank has also banned card payments for fund transfers to crypto exchange Binance, which is under investigation by the UK’s Financial Conduct Authority.

Lloyds Bank has a balanced policy towards cryptocurrency transactions. It restricts the use of credit cards for buying or funding cryptocurrency exchanges, but it allows the use of debit cards and bank transfers for such transactions, especially with platforms regulated by the UK's Financial Conduct Authority (FCA). However, Lloyds Bank does not offer any products or services related to cryptocurrencies.

Some additional information that might be useful:

• Lloyds Bank customers can deposit and withdraw funds from regulated cryptocurrency exchanges, such as eToro.
• Lloyds Bank has banned card payments for fund transfers to crypto exchange Binance, which is under investigation by the FCA.

HSBC Bank does not directly support cryptocurrency transactions; however, customers can still obtain digital currencies by linking their HSBC account to a regulated crypto exchange in the United Kingdom or Europe.  HSBC restricts the use of credit cards for buying or funding cryptocurrency exchanges, but it allows the use of debit cards and bank transfers for such transactions, especially with platforms regulated by the UK's Financial Conduct Authority (FCA). Like all UK banks, HSBC has banned card payments for fund transfers to crypto exchange Binance, which is under investigation by the UK's Financial Conduct Authority.

It’s worth noting, HSBC has set some limits on buying cryptocurrency with debit cards or bank transfers. These are:

• Payments – £2,500 for a single transaction and a total of £10,000 in any rolling 30-day period.
• Debit cards – £2,500 for a single transaction and a total of £10,000 in any rolling 30-day period.

 These limits are applied per customer with transaction values monitored over a 30-day rolling period.

Santander UK does not offer cryptocurrency products or services, but it allows secure deposits and withdrawals from FCA-regulated exchanges. However, due to fraud risks in the crypto market, the bank limits outgoing payments to cryptocurrency exchanges. Santander crypto users face a £1,000 per transaction limit and £3,000 in any 30-day period.

Challenger Banks

Starling Bank has recently banned all crypto-related transactions for its customers, citing the high risk and criminal use of cryptocurrencies.

Monzo Bank is a crypto-friendly bank that allows its customers to use a range of cryptocurrency exchanges to buy and sell crypto, as part of their personal banking with them. However, Monzo Bank may block some transactions based on risk, as any regulated bank would do. Monzo Bank does not directly facilitate cryptocurrency purchases on its platform. Monzo Bank has also banned card payments for fund transfers to crypto exchange Binance, which is under investigation by the UK's Financial Conduct Authority.

Revolut Bank is a digital bank that offers crypto services to its customers, but it has also suspended its U.S. crypto operations due to regulatory uncertainty. Revolut customers can buy and sell crypto using their cards or bank transfers, but they may face some limits and restrictions depending on the cryptocurrency and the exchange they use. Revolut does not directly facilitate crypto purchases on its platform, but it works with third-party providers to enable crypto transactions. Revolut has also banned card payments for fund transfers to crypto exchange Binance, which is under investigation by the UK's Financial Conduct Authority.

The key aspect is, if you use an FCA regulated exchange the banks should have no problems.

It is worth noting that the banks quote crime as a reason behind their lack of full support for crypto. These recently published figures help to add perspective:

• Crypto money laundering - $8.6Bn
• Crypto theft - $3.2Bn
• Darknet transactions - $1.7Bn
• Conventional money laundering - $2T, only roughly 2000 times as much as crypto crime and more than the entire crypto marketplace globally.

Slightly unfair to use volumes. The concern is based on the estimate that over 40% of crypto transactions are crime related which is easier to understand as a problem.

As ever – “Vires in Numeris”.

We are the UK's leading Crypto Tax specialists. We know crypto and can be your comprehensive and expert tax guide at all levels of complexity – from cryptocurrencies and NFTs, to trading and DeFi. Give our expter Crypto Tax team a call on 01380 723692 or send them an email for an informal chat.