In the past year, we’ve seen an uptick in UK banks’ restrictions on cryptocurrencies. The likes of Santander, HSBC, and Natwest introduced new limitations on using their credit and debit cards to purchase cryptocurrencies. And they are not alone – since the pool of crypto-friendly banks is shrinking, and it's getting difficult for customers to purchase cryptocurrency.
Many have banned making credit card payments on cryptocurrency exchanges and introduced low daily limits on how much can be transferred. When explaining the reason behind these changes, many cited protecting customers from enormous losses and cryptocurrency fraud.
NatWest says, “We know that customers investing their money in cryptocurrency has become extremely popular. However, we are also aware of the increasing risk posed by fraudsters exploiting this trend to dupe customers out of millions of pounds per month. As such, we have decided to take proportionate action to keep our customers safe and secure.”
Many, including HSBC and Santander, cite the Financial Conduct Authority’s official warning issued in 2022 as the motivation for the revamped restrictions.
What Makes a Bank Crypto-Friendly?
Crypto-friendly banks can be described as those placing minimal restrictions on interactions with exchanges. While the regulations change by the firm, they allow you to do the following:
Buy cryptocurrency using your debit card
Freely transfer funds to a crypto exchange
Withdraw funds from exchanges
Besides basic buying and selling functions, we also consider the institutions’ relationship with crypto-related technologies and the industry as a whole. Some, most notably JP Morgan and Barclays, are actively investing in the industry – to us, it can be a sign of a potentially lasting relationship.
To help your search in identifying the best crypto-friendly banks the UK has to offer, we specified high-street and online-only banks that are relatively crypto-friendly and evaluated their services as well as their attitudes towards digital assets.
Investing in cryptocurrencies involves a high degree of risk, and there is a significant potential for loss. Cryptocurrencies are highly volatile and can fluctuate widely in price over short periods of time. Before investing in digital assets, it is important to consider your investment objectives, risk tolerance, and financial situation carefully.
Crypto-Friendly Banks: Online Edition
1. Revolut
Debit Card Purchases | Yes |
|---|---|
Credit Card Purchases | N/A |
Daily Limits | None |
Revolut is not a bank per se (legally speaking, it’s an e-money institution), but it’s the most crypto-friendly of them all. After just two years of its foundation, the firm integrated cryptocurrency trading into its app. Fast forward to today, users can buy, sell, stake, spend, and transfer their coins to each other directly through the app.
And of course, it’s possible to buy digital assets on other exchanges using the Revolut debit card, with an order size limited to $100,000 (£80,098) per day.
Revolut combines cryptocurrencies with many of its remarkable features. You can earn interest on your crypto balance using the saving vaults and set up the round-up feature (which rounds up every purchase to the nearest pound) to transfer any extra penny to your crypto balance.
For those who are interested in advancing their knowledge, Revolut runs a Crypto Learn & Earn scheme. You can earn small amounts of coins as you participate in classes and solve quizzes.
Why Is Revolut Crypto-Friendly?
| Name | Score | Visit | Disclaimer | |
|---|---|---|---|---|
 | 8.5 | Visitrevolut.com |
2. Monzo
Debit Card Purchases | Yes |
|---|---|
Credit Card Purchases | No |
Daily Limits | None |
Despite being of a similar breed, Monzo is not as big on crypto as Revolut. The bank doesn’t levy any restrictions on cryptocurrency purchases using its debit card. This means that you can only buy and sell cryptocurrencies using external exchanges or brokers, like eToro.
The firm advertises itself as supporting digital assets purchases on “various exchanges”, but doesn’t specify which ones. One caveat is that like most banks, it reserves the right to block some transactions to avoid risk.
Why Is Monzo Crypto-Friendly?
3. Chase
Debit Card Purchases | Yes |
|---|---|
Credit Card Purchases | N/A |
Daily Limits | None |
Chase opened its virtual doors to British customers in 2021 and quickly became one of the top online banks in the UK. The firm currently doesn’t hold any restrictions on cryptocurrency purchases using its bank accounts, other than using FCA-authorised exchanges (which you should be doing in the first place).
The bank is a true friend to the crypto industry, despite the outspoken distaste of its CEO Jamie Dimon, who famously referred to digital assets as nothing more than a scam. Yet, the tides have turned – it has been almost six years since Mr Dimon’s remarks, and massive steps were taken since;
The company became the first major US bank to grant its wealth-management clients access to cryptocurrencies,
Executed its first-ever cross-border transaction using decentralised finance (DeFi) on a public blockchain,
It is developing JPCoin, which serves as a payment rail and deposit account ledger to simplify cross-border transactions.
JP Morgan itself doesn’t offer banking services in the UK, only through its partner Chase. Admittedly, the online-only bank doesn’t offer additional bells and whistles as Revolut, or signal an expansion of its cryptocurrency offerings yet.
Nevertheless, considering the involvement and activities its partner carries out across the pond, we believe there are enough reasons to believe that Chase is a crypto-friendly bank and possibly will stay as such.
Why Is Chase Crypto-Friendly?
| Name | Score | Visit | Disclaimer | |
|---|---|---|---|---|
 | 8.0 | Visitwww.chase.co.uk/ |
Crypto-Friendly Banks: Traditional Edition
1. Lloyds Banking Group
Debit Card Purchases | Yes |
|---|---|
Credit Card Purchases | No |
Daily Limits | None |
Lloyd’s was among the first to restrict crypto purchases – as of 2018, it's not possible to use a Lloyds credit card to purchase cryptocurrencies, regardless of the exchange. You can, though, still use your debit card.
The bank does look after its customers, as buying crypto with a credit card can be a serious financial undertaking. We particularly liked that it doesn’t rule out cryptocurrencies completely. Instead, the firm actively invests in making the industry a bit safer.
Back in 2020, as crypto assets were enjoying a pleasant bullish run, the bank launched an insurance policy protecting coins held in an online crypto wallet.
Online wallets, also referred to as hot wallets, provide a way to store coins online, but are infamous for their vulnerability against cyber attacks. Lloyd’s syndicate Atrium created the first-of-its-kind policy in collaboration with Coincover. It has flexible limits starting from £1,000 and is backed by Lloyd’s other insurers, the likes of TMK and Markel.
Why Is Lloyds Bank Crypto-Friendly?
| Name | Score | Visit | Disclaimer | |
|---|---|---|---|---|
 | 7.5 | Visitwww.lloydsbank.com/ |
2. Barclays
Debit Card Purchases | Yes |
|---|---|
Credit Card Purchases | Yes |
Daily Limits | None |
Barclays is among the few in the UK that don’t apply flat restrictions on cryptocurrency purchases using its bank accounts. As it stands now, customers can use their debit and credit cards on exchanges, but some may be restricted at times depending on security status. The checks are done on a payment-to-payment basis: if a certain exchange presents risk at the time, transfers may be blocked.
We still consider Barclays a crypto-friendly bank, or at least optimistic about its future prospects. The firm has long been involved in the industry. In 2018, it announced a landmark partnership with Coinbase which granted the exchange access to the UK’s Faster Payments Scheme (FPS) – only to break it off a year after.
Nevertheless, the bank is among the most flexible banks when it comes to regulating crypto purchases, and it continues to invest in the technology in some capacity. Most recently, it snapped up a stake in Copper, a prominent name in the crypto industry.
Why Is Barclays Crypto-Friendly?
| Name | Score | Visit | Disclaimer | |
|---|---|---|---|---|
 | 7.0 | Visitbarclays.com |
3. Nationwide
Debit Card Purchases | Yes |
|---|---|
Credit Card Purchases | No |
Daily Limits | £5,000 |
The building society hopped on the cracking-down trend and recently limited any transfers to cryptocurrency purchases to £5,000 a day. This is applicable for the majority of its accounts, barring FlexOne, its children's bank account, which limits crypto purchases to £100 a day. Credit card purchases are banned completely.
While the restrictions are definitely in place, they are considerably more flexible when compared to other institutions. For comparison, Santander limits transfers to exchanges to a £1,000 limit per transaction and £3,000 in any rolling 30-day period. You see similar limits set by the Royal Bank of Scotland and its subsidiary, Natwest: customers can only place a transfer of £1,000 a day and £5,000 in any 30-day period.
Why Is Nationwide Crypto-Friendly?
| Name | Score | Visit | Disclaimer | |
|---|---|---|---|---|
 | 7.2 | Visitwww.nationwide.co.uk/ |
Why Are UK Banks Cracking Down on Cryptocurrencies?
Cryptocurrencies are considered to be high-risk, speculative investments. Despite the billions in investments injected into the industry and a number of high-profile investors taking an interest in it, they still pose a high risk to everyday investors.
It’s nothing new, but the banks have ramped up their restrictions on crypto assets following the official warning the Financial Conduct Authority (FCA) issued in 2022. The regulatory body outlined its concerns in four main points:
Consumer Protection and Marketing Materials – The FCA has been outspoken about the risks associated with the advertisement of cryptocurrencies as high-return investment vehicles. The main concern is that while firms may overstate the returns, they may understate the risks involved. Plus, the FCA doesn’t regulate such financial institutions beyond anti-money laundering requirements.
Volatility – The FCA acknowledges that the significant volatility of cryptocurrencies and the difficulties in valuing coins poses a high risk of losses for retail customers.
Product Complexity – The organisation appreciates crypto assets' complexity, and how it can be difficult for consumers to gauge risks associated with it.
Fees and Charges – The FCA observes that the charges associated with cryptocurrency trading can be higher than regulated investment products, and may have a larger impact on retail investors.
Besides the inherent risks of volatility or complexity, the UK government doesn’t regulate cryptocurrencies. This means that if anything goes wrong, individuals are unlikely to have access to the Financial Ombudsman Service (FOS) or the Financial Services Compensation Scheme (FSCS).
The FCA announced that Binance is no longer allowed to undertake any activities in the country until further notice. As it stands now, no entity in the Binance Group has any form of authorisation. Following the announcement, all authorised UK banks banned interacting with Binance using their accounts.
Binance has a long history of legal woes globally. Many believe that the exchange was unable to provide a transparent view of its activities. As it stands now, the following countries and regions restrict access to Binance:
Ontario, Canada
Malaysia
And now, the UK.
What Banks Aren’t Crypto-Friendly?
As we said before, there’s a growing number of banks that increase their restrictions on cryptocurrency purchases. Here’s a list of major banks with the most stringent rules:
Starling Bank – Among the first online banks to ban cryptocurrency purchases, Starling doesn’t allow debit card payments nor bank transfers to buy or sell cryptocurrencies, regardless of the currency or exchange.
Santander – While it’s still possible to purchase cryptocurrency using its debit card, the transfers are limited to £3,000 per 30 days. It’s not possible to use a Santander credit card to buy crypto.
The Royal Bank of Scotland & NatWest – Similarly, RBS and its subsidiaries also ramped up its cryptocurrency restrictions in 2022. Customers can no longer use their credit cards, and debit card purchases are limited to £1,000 a day, and £5,000 per month.
A Chance of Reconciliation: The UK Government Is Set to Regulate Cryptocurrencies
The government announced ambitious plans to regulate the cryptocurrency market. It aims to provide “confidence and clarity” to consumers and businesses alike when dealing with digital assets. The proposals include;
Strengthening rules for crypto trading platforms,
Introducing a robust regime for crypto lending, which would make the UK the first country to tackle the issue in the world.
It’s a promising sign as the government doesn’t plan on banning cryptocurrencies outright, it instead seeks to mitigate the risks while “harnessing the advantages of crypto technologies”.
In other words, the government is committed to making the crypto-sphere a safe environment for consumers and aims to introduce fair and transparent standards. Which could mean improved protection of asset storage and expanding FSCS coverage to cryptocurrencies.
Many of the major economies allow cryptocurrencies, albeit with restrictions. But there’s a growing number of countries that outright banned crypto assets, including:
Egypt
China
Qatar
Saudi Arabia
Bolivia
The Legality and Use of Cryptocurrencies in the UK
Cryptocurrency is not illegal in the United Kingdom, and there aren’t any signs of becoming so in the near future. As it stands now, the FCA regulates crypto assets for money laundering purposes – and all institutions facilitating buying and selling crypto must be registered with the regulatory body. Up until the official warning it issued in 2022, the FCA remained calm towards crypto assets.
As of 2020, crypto assets are considered property in the UK. It means that they are subject to capital gains tax. If you turn a profit from your cryptocurrency trading, you need to file it in your tax return.
The FCA also outright banned cryptocurrency derivatives due to the risk of high losses the use of leverage poses.
What Can You Do With Cryptocurrencies in the UK?
No major high street shop accepts crypto payments. Although you might see some corner shops or coffee stands that accept Bitcoin while strolling around in London or Liverpool. Yet, there are some businesses that will use your coins to buy their services, mostly technological services. Most notably, NordVPN and Hosting.co.uk allow cryptocurrency as a form of payment.
Today, individuals carry on using cryptocurrencies as investment products. And it is very much embraced among Brits: as of January 2023, 1 in every 10 bought a coin at one point in their lives.
Recap of Crypto-Friendly Banks in the UK
And there, we have it. While the majority limits engaging with cryptocurrencies at some capacity, the six banks we listed above are relatively crypto-friendly. Here’s a quick recap to rehash your memory:
Debit card purchases | Credit card purchases | In-app investing | Daily Limit | |
|---|---|---|---|---|
Revolut | Yes | N/A | Yes | $100,000 |
Monzo | Yes | No | No | None |
Chase | Yes | N/A | No | None |
Lloyd’s | Yes | No | No | None |
Barclays | Yes | No | No | None |
Nationwide | Yes | No | No | £5,000 |
The Bottom Line
Barring Starling Bank, UK’s challenger banks seem to favour cryptocurrencies more than traditional banks. If you are keen on crypto assets, Revolut should be your first stop – with in-app investing, the ability to execute crypto transactions, excellent saving features, and easy account opening, it can be a suitable addition to your main bank account.
Revolut’s in-app trading platform is an asset, but you can find better rates elsewhere. If you go with any other bank on our list, you have to find robust cryptocurrency exchanges anyway.
Crypto-friendly UK banks already do their part in assessing the risk any exchange poses, but you should also do your due diligence. Make sure to investigate whether your chosen cryptocurrency exchange is regulated by the FCA, offers transparent pricing, and supports a navigable platform. Remember, your chosen platform might be the safest around – but it doesn’t eliminate risks associated with crypto assets.
There’s a reason why the FCA is cracking down on cryptocurrencies this much. Although they present high return potential and are attractive to many, they are fairly volatile and carry a high risk of losses.
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