Why Financial Access Remains the Defining Challenge for UK Crypto Firms — and What Needs to Change
For years, UK crypto businesses have faced a persistent and well-documented obstacle: securing and maintaining reliable access to banking and essential financial and professional services. Whilst the UK aims to position itself as a global hub for digital assets, this foundational barrier continues to hold back innovation, investment, and economic growth potential.
Earlier this month, CryptoUK brought industry experts together for two complementary conversations to explore this issue in depth. On 3 December, we hosted a webinar that unpacked the practical realities of operating without stable banking access. The following day, we were joined by members for an in-person roundtable, offering candid insights into why these challenges persist — and what meaningful change will require.
You can watch the full webinar here:
The Reality Facing UK Crypto Firms Today
Although regulation has matured and compliance expectations are clearer than ever, crypto and digital asset firms still encounter experiences that would be unthinkable in most other sectors:
- sudden or unexplained account closures,
- inconsistent and opaque onboarding decisions,
- frozen funds with little or no explanation,
- reliance on high-cost “last resort” providers,
- and repeated requests for information that exceed what regulators require.
The participants in our webinar — Matt Orchard (Equals Money), Steve Martin (Greengage), and Bob Huxford (SEC Newgate), moderated by Ian Taylor (CryptoUK) — emphasised that these issues cut across company size, business model, and maturity. Even firms with robust compliance frameworks, FCA registration, and sophisticated risk controls struggle to secure basic financial infrastructure.
The result is a sector operating with unnecessary friction, uncertainty, and cost — and a competitive environment in which UK-based firms are disadvantaged relative to global peers.
Why Does This Problem Persist?
Across both sessions, several underlying causes became clear.
1. Institutional Risk Aversion, Not Regulation
Banks often adopt a conservative stance based on perceived, rather than actual, risk. Many remain unclear about how crypto firms operate, how revenue flows work, or what “good” compliance looks like. Internal decisions frequently exceed regulatory expectations.
2. Misalignment Between Policy Goals and Market Practice
While the UK Government has been vocal in its support for digital asset innovation, this ambition has not yet fully translated into consistent banking practice. Without alignment across regulators, policy teams, and frontline compliance teams, uncertainty persists.
3. Dominance of Legacy Financial Infrastructure
Traditional banks sit atop existing payment rails and enjoy the commercial advantages they provide. New technologies are often seen as disruptive rather than complementary, influencing willingness to support the sector.
4. Lack of Transparency in Decision-Making
Participants noted that firms are rarely told why access is denied or withdrawn. This lack of clarity prevents companies from addressing perceived concerns and forces them into repeated, costly onboarding processes.
5. International Competitors Are Moving Faster
Peers in the US, UAE, Europe, and Australia increasingly provide clearer and more predictable access pathways for digital asset businesses. Some UK firms are now shifting parts of their operations overseas, risking long-term economic competitiveness.
Common Themes From Industry Voices
Despite different perspectives — from payments providers to operational leads to communications specialists — the themes were consistent:
- The sector is not seeking special treatment, only fair, transparent, risk-aligned access.
- The challenge is systemic and long-standing, unaffected by political turnover.
- Good compliance is not the problem; misunderstanding and inconsistency often are.
- The industry needs a clearer public narrative about its value, impact, and safeguards.
- The consequences of restricted access go beyond individual businesses — they affect consumers, innovation, and the UK’s economic ambition.
What Needs to Happen Next
Although the webinar and roundtable focused primarily on diagnosis and shared experience, a clear set of priorities naturally emerged. Industry leaders aligned on what must change to improve financial access and ensure the UK remains globally competitive.
1. Better Education and Understanding
Banks, policymakers, and the public need clearer insight into how crypto businesses operate, how risks are managed, and the safeguards already in place. Misconceptions continue to drive disproportionate risk responses.
2. Clearer, Shared Expectations Across the Ecosystem
Firms want transparency:
- What information do banks genuinely need?
- What constitutes a strong risk profile?
- How should different business models be assessed?
Shared expectations would reduce inconsistency and allow good actors to demonstrate their standards more effectively.
3. More Transparent Dialogue Between Industry and Banks
Constructive engagement — not confrontation — is essential. Regular communication can correct misconceptions, build mutual confidence, and align incentives.
4. A Unified Public Narrative
The crypto sector must better articulate:
- its consumer protection capabilities,
- its contribution to innovation and digital growth,
- and its role in the future competitiveness of the UK economy.
Without a clear narrative, financial access risks being treated as a niche, rather than national, issue.
5. Focus on Practical, Real-World Improvements
Participants stressed the importance of achievable, incremental steps that make the onboarding process more predictable and reduce operational uncertainty.
Why This Matters for the UK’s Future
The UK has the regulatory frameworks, talent pool, and ecosystem strength to lead globally in digital assets. But the ability of crypto firms to access basic financial services will determine whether that ambition is realised.
Both the webinar and roundtable underscored a simple truth: without fair access to essential financial infrastructure, the UK risks losing innovation, investment, and competitiveness to more pragmatic jurisdictions.
We invite you to watch our webinar, which offers a focused, expert-led examination of the financial access challenges facing UK crypto firms. The discussion provides valuable clarity for those working in the industry, partnering with it, or shaping regulatory and policy frameworks, highlighting both the causes of today’s barriers and the steps required to achieve lasting, constructive change.
