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CryptoUK calls on FCA to oppose banks banning transfers to crypto exchanges

CryptoUK, a self-regulatory group for the UK cryptoasset industry, has called on UK financial regulators to oppose blanket bans on transfers from banks to cryptoasset platforms.

In a letter to the Financial Conduct Authority (FCA) and Payment Systems Regulator (PSR), director of operations Su Carpenter outlines how banks limiting transactions to crypto platforms is “anti-competitive and disproportionate”.

Carpenter says banks are implementing blanket bans rather than taking a risk-based and case-by-case approach supported by compliance, transaction monitoring and due diligence.

Many major banks have enacted bans or restrictions and CryptoUK is concerned many more will follow.

Carpenter claims the move will “have the effect of fundamentally undermining the government’s ambition to become a cryptoasset hub”.

She highlights the fact that many crypto exchanges have anti-money laundering (AML) registrations, electronic money institution (EMI) or MiFID licenses “and invest substantial time, money and resources into compliance and consumer protection”.

Carpenter adds that the group wishes to “work constructively” with the banking sector, suggesting a “whitelist” of platforms or new regulation in the vein of payment services Regulation 105, which obliges credit institutions to provide access to payment services providers.

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