A recent study has revealed that a significant portion of cryptocurrency investors in the United Kingdom face serious difficulties in funding their accounts due to various regulatory and banking hurdles.
IG Group Survey Findings
The IG Group survey of 500 UK crypto investors and a broader sample of 2,000 adults found that 40% of users reported that their banks had blocked or delayed payments to crypto providers. Among those affected, 29% filed complaints with their banks, while 35% switched lenders.
Bank Restrictions on Crypto Payments
Some banks, including Chase UK and NatWest, have gone further by restricting or blocking payments to crypto exchanges under the banner of fraud prevention. Additionally, the FCA has prohibited retail customers from using borrowed money, including credit cards, to purchase digital assets, further narrowing the funding options for everyday investors.
Critique of the UK Crypto Sector
Former Chancellor of the Exchequer and current Coinbase advisor George Osborne has expressed concern that the UK is 'falling behind' in the 'crypto race'. Osborne pointed out that the lack of progress with stablecoins could undermine the UK's role in global financial markets, stating, 'What I see makes me anxious. We have allowed ourselves to be left behind.'
The low availability of funding for crypto accounts and the restrictions imposed by banks place UK investors at a disadvantage. Without regulatory changes, the country risks falling behind in the global crypto industry.
