UK crypto investors are still having their payments blocked when trying to buy crypto. That’s according to a new survey conducted by Norstat on behalf of UK-based trading platform IG, which asked 2,500 investors between August 1 and 5 about their experiences. It found 40% of respondents attempting to buy crypto experienced having their payments blocked or delayed by their banks. “This overreach from banks is only possible because there’s still no clear UK regulatory framework in place governing crypto,” Michael Healy, UK managing director at IG, told DL News in a statement. The survey also found that 42% of UK adults said they opposed banks interfering in crypto transactions, compared to just 33% who support such action. When faced with transaction blocks, 35% of respondents said they switched to a different bank that allows crypto transactions.UK crypto investors have reported banks cutting them off from crypto as early as 2021. However, the fact that the issue still exists four years later shows that the UK is lagging behind its peers when it comes to regulating digital assets, critics say. While the UK is actively working towards a regulatory framework for crypto, the industry is largely unregulated. The Financial Conduct Authority is the main regulator overseeing crypto, but its oversight is primarily focused on preventing money laundering and protecting consumers.That’s despite the number of UK crypto owners growing. A November 2024 report from the FCA found that 12% of residents owned crypto, up from 10% the year before.Why banks block cryptoSeveral UK banks, including Chase UK and Starling Bank state that they block all transactions to crypto exchanges.Others that previously imposed blanket bans on crypto, like HSBC and NatWest, have recently opened up again but with strict limits on how much customers can deposit to crypto exchanges.Most banks cite fraud prevention as the main reason for the rules. “Banks do not enjoy blocking payments, but if certain beneficiaries become a hotbed for fraud, they are left with little choice,” Daniel Holmes, a fraud prevention specialist, said in a blog post for UK Finance, top trade association for the UK banking and finance industry.NatWest has warned customers of crypto investment scams, where criminals offer fake investments that don’t really exist or aren’t worth the money.Barclays says it prevents its customers from buying crypto with its line of credit cards due to the asset class being unregulated in the UK and prone to wild price swings. A crypto hub?The UK at one point had bold ambitions to position itself in the vanguard of digital asset development.In 2022, Rishi Sunak, then chancellor of the exchequer, said he wanted to make the UK a global hub for cryptoasset technology.Those efforts stalled after last year’s election, with the Labour government seeming unlikely to make crypto regulations a priority. Since then, the EU has started to enforce its own crypto law, and US President Donald Trump has rubberstamped a stablecoin bill.The UK is falling behind, industry pundits argue.“If the government is serious about making the UK a home for crypto innovation, it needs to act,” Healy said.He may get his wish. Rachel Reeves, the UK’s minister of finance, published a draft bill in April to regulate the industry. She has confirmed plans to present the bill to parliament by year’s end, Gurinder Singh Josan, Labour backbencher and co-chair of the All-Party Parliamentary Group for Crypto and Digital Assets, told DL News. HMRC, the UK tax authority, has also introduced new rules that will force crypto firms to report users’ personal data — such as name, date of birth, and home address — to the authorities for every trade made. The new rules will snap into place on January 1.So far, the UK crypto industry hasn’t complained. “If you didn’t expect that you would have to be in this position to meet these levels of compliance and to operate within these frameworks — where have you been for the last few years?” Su Carpenter, executive director of CryptoUK, the industry trade association that represents some 150 crypto market stakeholders, told DL News in May.Tim Craig is DL News’ Edinburgh-based DeFi Correspondent. Reach out with tips at [email protected].UK crypto investors are still having their payments blocked when trying to buy crypto. That’s according to a new survey conducted by Norstat on behalf of UK-based trading platform IG, which asked 2,500 investors between August 1 and 5 about their experiences. It found 40% of respondents attempting to buy crypto experienced having their payments blocked or delayed by their banks. “This overreach from banks is only possible because there’s still no clear UK regulatory framework in place governing crypto,” Michael Healy, UK managing director at IG, told DL News in a statement. The survey also found that 42% of UK adults said they opposed banks interfering in crypto transactions, compared to just 33% who support such action. When faced with transaction blocks, 35% of respondents said they switched to a different bank that allows crypto transactions.UK crypto investors have reported banks cutting them off from crypto as early as 2021. However, the fact that the issue still exists four years later shows that the UK is lagging behind its peers when it comes to regulating digital assets, critics say. While the UK is actively working towards a regulatory framework for crypto, the industry is largely unregulated. The Financial Conduct Authority is the main regulator overseeing crypto, but its oversight is primarily focused on preventing money laundering and protecting consumers.That’s despite the number of UK crypto owners growing. A November 2024 report from the FCA found that 12% of residents owned crypto, up from 10% the year before.Why banks block cryptoSeveral UK banks, including Chase UK and Starling Bank state that they block all transactions to crypto exchanges.Others that previously imposed blanket bans on crypto, like HSBC and NatWest, have recently opened up again but with strict limits on how much customers can deposit to crypto exchanges.Most banks cite fraud prevention as the main reason for the rules. “Banks do not enjoy blocking payments, but if certain beneficiaries become a hotbed for fraud, they are left with little choice,” Daniel Holmes, a fraud prevention specialist, said in a blog post for UK Finance, top trade association for the UK banking and finance industry.NatWest has warned customers of crypto investment scams, where criminals offer fake investments that don’t really exist or aren’t worth the money.Barclays says it prevents its customers from buying crypto with its line of credit cards due to the asset class being unregulated in the UK and prone to wild price swings. A crypto hub?The UK at one point had bold ambitions to position itself in the vanguard of digital asset development.In 2022, Rishi Sunak, then chancellor of the exchequer, said he wanted to make the UK a global hub for cryptoasset technology.Those efforts stalled after last year’s election, with the Labour government seeming unlikely to make crypto regulations a priority. Since then, the EU has started to enforce its own crypto law, and US President Donald Trump has rubberstamped a stablecoin bill.The UK is falling behind, industry pundits argue.“If the government is serious about making the UK a home for crypto innovation, it needs to act,” Healy said.He may get his wish. Rachel Reeves, the UK’s minister of finance, published a draft bill in April to regulate the industry. She has confirmed plans to present the bill to parliament by year’s end, Gurinder Singh Josan, Labour backbencher and co-chair of the All-Party Parliamentary Group for Crypto and Digital Assets, told DL News. HMRC, the UK tax authority, has also introduced new rules that will force crypto firms to report users’ personal data — such as name, date of birth, and home address — to the authorities for every trade made. The new rules will snap into place on January 1.So far, the UK crypto industry hasn’t complained. “If you didn’t expect that you would have to be in this position to meet these levels of compliance and to operate within these frameworks — where have you been for the last few years?” Su Carpenter, executive director of CryptoUK, the industry trade association that represents some 150 crypto market stakeholders, told DL News in May.Tim Craig is DL News’ Edinburgh-based DeFi Correspondent. Reach out with tips at [email protected].