UK banks face 10,000 complaints in 3 months over crypto restrictions

Revolut, a digital bank that allows crypto purchases through its app, nevertheless featured among institutions receiving complaints.

Some banks do state explicit limits. Barclays restricts crypto transfers to 2,500 pounds ($3,340) per transaction and 10,000 pounds over 30 days. NatWest and Santander also state transaction and monthly limits. Lenders including Chase, Starling, TSB, Metro Bank and Virgin Money were identified as prohibiting crypto transactions altogether.

Banks with published limits accounted for 61% of the complaints, compared with 28% involving institutions without published restrictions and just under 10% involving banks with outright bans.

SWC argues that the differences raise questions about financial firms’ requirements to provide customers with clear information. A customer looking to switch banks to obtain reliable access to crypto transactions may struggle to determine which institution will actually do what they expect.

Banks have legitimate reasons to scrutinize crypto transfers given the risk of fraud, scams and money laundering.

However, the SWC argues, blanket restrictions go beyond proportionate risk management and conflict with expectations that financial crime controls should assess individual customers and transactions.

SWC proposes banks publishing clear explanations of their restrictions to provide meaningful ways for customers to challenge blocked transfers.

“Banks shouldn’t be allowed to apply blanket restrictions across a whole industry,” Harries said. “They should take a case-by-case approach, not choke off the entire sector.”