Cases of UK banks blocking or delaying transfers to cryptocurrency exchanges are surging.
A report published by the UK Cryptoasset Business Council (UKCBC) showed major banks are blocking remittances linked to cryptocurrency trading, Cointelegraph reported on Jan. 26 local time.
In the survey, 80 percent of 10 centralised exchanges said instances of customer transfers being blocked or restricted are increasing. UKCBC analysed that banks block or delay 40 percent of transfers to exchanges.
In particular, one UK exchange said a 1 billion pound transfer last year fell through after a refusal by a bank. Large banks have strict limits on transfers and card payments to cryptocurrency exchanges, and some challenger banks are also tightening controls by setting monthly caps, it said.
UKCBC said even exchanges registered with the Financial Conduct Authority (FCA) face restrictions. It said blanket regulation by banks hampers competition, and urged the government and financial authorities to prevent excessive intervention by banks and adopt a risk-based approach.
Chi-gyu Hwang
delight@d-today.co.kr