The difficulties faced by crypto companies range from having their applications rejected and their accounts suspended to being overwhelmed with documentation.
According to multiple sources interviewed by Bloomberg, crypto companies in the United Kingdom have difficulty gaining access to banking services. The few institutions that continue to work with crypto companies are requesting additional documentation and details on how they monitor client transactions.
Challenges include rejected applications, locked accounts, and a mountain of documentation. As the situation has deteriorated in recent weeks, crypto companies have even complained to Prime Minister Rishi Sunak’s government. The action contradicts Sunak’s intentions to prioritize financial technology disruption and transform the United Kingdom. A global center for crypto.
Tom Duff-Gordon, vice president of international policy at Coinbase, told Bloomberg that the banking industry has reacted more quickly than the EU. According to Duff-Gordon, the European Union’s efforts to establish a framework for digital assets have made institutions in other nations more receptive to crypto firms. The Markets in Crypto Assets (MiCA) legislation was ratified by the European parliamentary committee in October, nearly two years after it was first introduced in September 2020. This month is designated for the vote’s conclusion.
According to data from PitchBook, venture capital investments in digital asset companies in the United Kingdom have decreased 94% to $55 million so far in 2023, compared to a 31% increase in other European nations. To continue operations in the United Kingdom, crypto companies are utilizing payment service providers like BCB Payments and Stripe.
Also in March, the self-regulatory trade association CryptoUK proposed the establishment of a “white list” of registered companies in the country in response to banks restricting or prohibiting transactions with crypto companies.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.