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CryptoUK calls on government to intervene over bank restrictions

CryptoUK calls on government to intervene over bank restrictions

Trade Association CryptoUK has written to the government expressing "deep concern" about recent moves by banks to limit cryptocurrency purchases and suggested the creation of a "white list" of exchanges that should be exempt from such restrictions.

In recent months, NatWest, HSBC, Nationwide Building Society and Santander have all placed restrictions on customers buying cryptocurrency, citing regulatory concerns and the risk of scams.

In a letter to Economic Secretary to the Treasury Andrew Griffith, CryptoUK says that blanket bans and restrictions "will have the effect of fundamentally undermining the Government’s ambition to become a crypto asset hub and its mission to maximise the potential of Web3 to spur UK growth and innovation".

The trade association says that government action is warranted because banks are putting in place these blanket restrictions instead of take a risk-based and case-by-case approach.

The letter suggests government bringing bank and crypto CEOs together to find a "viable solution", with one option being the creation of a white list of platforms that "have engaged with the UK’s regulatory perimeter (either through AML registration or other EMI/MiFid licenses), to which transactions should be allowed to take place freely".

In a separate letter to the FCA and Payment Systems Regulator, CryptoUK says that while it accepts that the regulators may not wish to intervene in the commercial decision of bank, "in this case we believe action is warranted because of the blanket approaches that have been taken".

Comments: (1)

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 23 March, 2023, 09:36Be the first to give this comment the thumbs up 0 likes

With the world's second largest cryptoexchange (FTX) going bust overnight, that too due to alleged fraud, I wonder how many cryptoexchanges will qualify to be in the said "cryptoexchange whitelist".