In the early days of cryptocurrencies, many investors in the United Kingdom had their bank accounts closed and their cash frozen simply because they used their accounts to send or receive money to or from a cryptocurrency exchange. This led to the closure of their accounts.
Thankfully, in recent years there has been a marked improvement in the interaction between banks and the bitcoin market. Despite this, it is still a good idea to be aware of which banks investors and traders in cryptocurrencies are able to use without having to worry about the risk of the police showing up at their door.
What Exactly Are Banks That Are Crypto-Friendly?
The phrase “crypto-friendly banks” refers to banks and other financial institutions that give customers the ability to freely withdraw and deposit money from their accounts into cryptocurrency-related platforms. This is suggested by the name of the phrase itself.
A bank that is crypto-friendly should allow you to do the following:
You are free to buy and sell cryptocurrency using the credit and debit cards that they issue.
Execute wire transfers to cryptocurrency exchanges and other organisations operating in a similar manner.
Make a withdrawal of funds from your investments in cryptocurrency.
The United Kingdom’s Finest Cryptocurrency-Friendly Banks
Branches of the Royal Bank of Scotland (RBS)
Customers who deal with RBS regularly report that dealing with bitcoin transactions typically does not present any difficulties for them.
You are free to withdraw money from them or deposit it at any time as long as you use one of their credit or debit cards that is compatible with exchangers. However, we are unable to provide any sort of guarantee that they will let you use any exchange. However, if you limit yourself to well-known exchanges like Coinbase and CEX.io, you shouldn’t run into any problems.
2. The Standard Chartered Bank of Canada
Customers claim that Standard Chartered Bank (SCB) now forbids the use of debit and credit cards on websites associated with cryptocurrencies; consequently, it is difficult to comprehend why the bank is included on this list.
However, the bank has made it clear on multiple occasions that “crypto-assets” are not going anywhere anytime soon. Standard Chartered Ventures (SCV), the investment division of the bank, has just recently launched a trading desk in addition to a cryptocurrency custody service.
The other positive aspect is that there have been no reports of customers’ bank accounts being frozen as a result of withdrawing funds from cryptocurrency exchanges or making wire transfers. This is a relief for those who rely on these services.
3. Across the Country
Payments made with debit cards are accepted at Nationwide, and customers have the ability to easily deposit and withdraw funds from platforms used for trading cryptocurrencies. Therefore, providing there are no limitations placed on the use of credit cards for transactions, we can consider them to be crypto-friendly.
In addition, there is a known issue with Coinbase SEPA deposits that has been ongoing since 2018, but you won’t run into this problem with other exchanges.
4. TSB Bank
It has been reported that customers of TSB Bank can use their credit and debit cards to purchase cryptocurrency. There have been no reports of any issues regarding the process of depositing or withdrawing funds from bitcoin exchanges. You should be aware, however, that banks will frequently flag large transactions, which means that you may be required to split transfer amounts or get in touch with TSB in the event that this occurs.
5. Barclays Bank
Barclays, which is one of the largest investment banks in the United Kingdom, has a significant interest in blockchain technology as well as cryptocurrency.
Even though Barclays severed its partnership with Coinbase in August 2019, customers in the United Kingdom can still use their debit and credit cards to purchase bitcoins in most cases.
There have been rumours circulating that Barclays is refusing to process deposits and withdrawals to and from certain cryptocurrency exchanges, and that the bank is also occasionally cancelling and/or suspending customer accounts.
NatWest, which is owned by RBS, now accepts credit and debit card payments for the purchase of cryptocurrencies in response to customer feedback. Customers are able to withdraw money easily from cryptocurrency exchanges as well as deposit money into those exchanges.
There have been a few complaints made regarding a transaction that was declined, and it is alleged that a NatWest customer service agent stated that the bank has a new policy. In spite of these issues, the vast majority of users claim that they are able to use their accounts to conduct transactions using various cryptocurrencies.
Challenger Banks That Are Positive Towards Cryptocurrencies
Small retail banks that have only recently been founded are referred to as “challenger banks.” These banks compete head-on with the nation’s larger and more established “big four” banks, sometimes by specialising in markets such as bitcoin and blockchain that the “big four” banks do not already offer.
They provide cryptocurrency investors with a means to avoid banking with crypto banks that are not friendly.
For instance, even though Lloyds Bank does not support cryptocurrency transactions, you are free to move money from your Lloyds account to your Revolut account, convert those funds to Euros or Pounds, and then deposit those funds on any cryptocurrency exchange you choose.
Xace was designed to be a cryptocurrency bank, a bank that welcomes gamers, and a bank that acknowledges bitcoin as a form of payment.
The organisation provides named business and personal accounts for GBP with UK Faster payments as well as EUR accounts for SEPA payments that are processed through IBANs. Xace has emerged as one of the leading choices for individuals who are interested in gaming, cryptocurrencies, or both. In addition to supporting CHAPs and BACS payments, Xace is also one of the best choices available.
Xace is a small payment institution that complies with the Payment Services Regulations 2017 (FRN: 911400) and has registered with the Financial Conduct Authority to provide payment accounts.
IBANs with individuals’ or companies’ names attached.
IBAN accounts in Europe and those in the UK.
Direct Debits and virtual debit cards
Several accounts denominated in GBP and EUR
Notifications sent via push and alerts regarding spending
Ideal for: Entrepreneurs, traders, freelancers, and others who work for themselves independently.
Orounda is a corporate firm that offers international bank account numbers to businesses both inside and outside of the European Union. The company was founded in 2015 and has its headquarters in Edinburgh (IBAN).
Orounda provides wire solutions that are compliant with both SEPA and SWIFT, and the company markets its service as being “crypto-friendly.” If you run a cryptocurrency-related business in the United Kingdom and want to accept or process customer deposits in a streamlined manner, this payment service might be just what you need.