Which banks in the UK are crypto friendly?

Highlights 

  • Crypto-friendly banks are the banks and financial institutions that allow customers and clients to purchase cryptocurrency easily by using its debit and credit cards.
  • Some crypto-friendly banks in the UK include Royal Bank of Scotland, Nationwide, TSB Bank, Barclays, NatWest, ClearBank and the Co-Operative Bank.

Every country has different rules and regulations for trading of cryptocurrencies. While some countries are crypto-friendly, some have so far barred its citizens from trading in cryptocurrencies mostly due to its high volatile nature. In the UK, just like many other countries, cryptocurrencies are feared for sheer fraud and massive money laundering. Because of this, most of the banks are staying away from the digital cryptocurrency trading.

Which banks in the UK are crypto friendly?

Despite restrictions and high volatility scare, many banks in the UK have adopted crypto-friendly transactions to create a chain. The demand for crypto accounts has been on the rise to create a connected system between the investors and businesses on the foundations of payments plants and processing. 

What is a crypto friendly bank?

Crypto-friendly banks are the banks and financial institutions that allow customers and clients to make payments easily through a series of legit deposit and withdrawal from their accounts to cryptocurrency-related platforms.

The crypto-friendly bank allows customers to use their debit and credit cards to easily purchase and sell crypto, cash-out funds from crypto investments and complete wire transfers to cryptocurrency exchange and similar entities.

Also read: All about Kusama Cryptocurrency

Why banks avoid cryptocurrencies

The main reason is cryptocurrencies’ highly volatile nature and that there are no set regulations. Banks are reluctant as they do not wish to lose money, nor they want its customers to lose the value of their investment with a small change in crypto market.   

The regulations around cryptocurrencies are strict and are going to be even tougher in the future as the world warms up to cryptocurrencies and due to reports of fraud and money laundering are some major issues bothering investors. Many countries are already banning cryptocurrencies or imposing strict regulations. However, in most countries including UK, there are no well-defined regulations on how bank should deal with cryptocurrencies, and it makes difficult for interested banks. 

Why you need Crypto-friendly banks

The crypto-friendly banks enable customers to initiate transaction with a low fee which is flexible, conductive, and beneficial to them. Crypto-banks also allow fast transaction action and grants clients with lower fees once they fulfill a transaction.

Crypto-friendly banks connect their digital operations with high-tech software that allow users to transact globally and when it comes to transaction fulfillments, accountability of transactions is on the top of the list.

Also read: All About Cosmos (ATOM) Cryptocurrency

Best Crypto-Friendly Banks in UK

  1. Barclay’s

Barclay’s is one of the oldest and leading investment banks in UK with operates in other continents such as Australia and Africa. In August 2019, the bank ended its partnership with Coinbase. However, customers can still buy cryptocurrencies with their debit and credit cards in most cases.

In terms of crypto exchange, it refuses withdrawal or deposit to and fro some exchanges and in some cases freezes or closes accounts. Barclay’s has also prohibited customers from making debit and credit card deposits to Binance because of regulatory uncertainty with its operations in the country.

  1. Royal Bank of Scotland (RBS)

RBS is owned by the UK government and has mostly been positive about cryptocurrency transactions. It allows customers to easily purchase crypto with their debit or credit cards and withdraw or deposit funds to exchange. 

  1. ClearBank

The bank took the initiative when Barclays and Coinbase ended their partnership. Its customers can use debit and credit cards for the purchase of crypto. However, it is not a traditional bank for retail customers but is a clearing bank for financial institutions.

  1. Nationwide

The bank has not taken any stance against cryptocurrency yet. It allows customers to buy cryptocurrencies using their debit card but not credit cards. However, in 2018, Coinbase announced that it will no longer accept deposits from Nationwide bank accounts due to its move of denying some of the basic transacting methods.

  1. Natwest

Natwest is a subsidiary bank of Royal Bank of Scotland (RBS) and has similar stance as its parent bank. It allows its customers to purchase cryptocurrencies with debit and credit cards and they can deposit to exchanges and withdraw funds from these platforms easily.

On 3 July, Natwest started temporary capping transfer to several crypto platforms, including Binance and also stated the limits maximum amount customers can transfer to cryptocurrency platform.

On 26 July, Natwest placed complete ban on Binance, after limiting transactions to several crypto platforms.

  1. TSB Bank

The bank allows purchase of cryptocurrencies through credit and debit cards and there were no issues reported with withdrawals and deposits to cryptocurrency exchanges. However, it restricts large transactions so the users have to split transfer amount or talk to bank in such cases.

  1. The Co-Operative Bank

The Co-operative Bank generally allows debit and credit card purchase and transactions to and from crypto services.

Some banks such as HSBC, Lloyds Bank and Capital One have explicitly banned crypto-related transactions. Some banks have even implied a ban.

Some of the app-based challenger banks that are crypto-friendly are Xace, Orounda, Cashaa, Revolut, Fidor, Monzo, Starling, BCB Group and Wirex.

Also read: Why Safemoon crypto is trending

Conclusion

Crypto transactions are still considered highly risky with strict restrictions across various countries. However, there are some progressive banks that are interested in new trends and are supporting their clients with crypto transactions. In future, various traditional banks will surely come forward to allow crypto-related services.

Every country has different rules and regulations for trading of cryptocurrencies. While some countries are crypto-friendly, some have so far barred its citizens from trading in cryptocurrencies mostly due to its high volatile nature. In the UK, just like many other countries, cryptocurrencies are feared for sheer fraud and massive money laundering. Because of this, most of the banks are staying away from the digital cryptocurrency trading.

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