UK-based Banks stepping away from the crypto sector: Report
Reportedly the UK based majority of the banks are fearing to provide services to the crypto companies, a similar situation that is going on in the United States (US).
The United Kingdom is a very big crypto-friendly region. The crypto regulation authority in the UK is in the hands of the Financial Conduct Authority (FCA). Crypto regulation systems are very strict under the jurisdiction of the UK and it is not an easy task for the crypto companies to secure regulatory approval to provide services in the UK’s crypto market.
On 2 April 2023, Bloomberg reported that the majority of the crypto companies are facing huge hurdles to getting smooth banking services under the jurisdiction of the UK.
The report noted that many crypto-associated people disclosed that they are failing to get new banking partners while existing banking partners are asking for more documents & details about their corresponding crypto business & how they monitor the financial activities to keep services away from bad actors.
Under the current situation, the majority of the crypto companies are moving toward BCB Payments and Stripe to get smooth banking services.
To fight against this situation, many crypto companies reached out to the UK’s crypto-friendly Prime Minister Rishi Sunak.
Tom Duff-Gordon, the vice president of international policy at Coinbase exchange, spoke with Bloomberg and confirmed that it is very tough to get banking services in the UK over the EU. According to Coinbase’s vice president, the European Union (EU) lawmakers did well for this sector and their crypto regulatory efforts created a very good situation for the EU-based banks to provide banking services to local & foreign Crypto companies.
The report also noted that the majority of venture capitalists (VCs) in the UK showed very little interest in this innovative sector. In the last 12 months, the VCs’ investment in this sector plunged by 94% to $55M.
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