If you’re drawn to cryptocurrency, chances are that your opinion of the prevailing financial system that is backed by big banks and global finance institutions, leaves much to be desired. At CoinsFast, we strongly believe that peer-to-peer trading is the way forward.
Similar ideals were expressed by the creator of Bitcoin. The new digital currency was a game-changer. To this day, every single Bitcoin transaction is recorded and publicly visible on its blockchain. This foundational model has been followed by countless cryptocurrencies that have come along since.
As global businesses have come to understand the revolutionary implications of cryptocurrency, a new trend has arisen whereby users’ access to crypto exchanges is being blocked.
The U.K. has emerged as a key battleground for bank customers who want to engage in crypto markets. Here is a list of major U.K. banks that block crypto, and how you can bypass their restrictions.
HSBC
HSBC recently banned its customers from buying stock in any public company that holds cryptocurrencies in its treasury, citing fraud concerns. This follows an earlier decision the bank made this year, to block all transactions to and from crypto exchanges. Crypto traders are now unable to transfer their profits to an HSBC bank account.
Barclays
Barclays recently decided to block their customers from transferring money onto cryptocurrency exchanges. As with most crypto-hostile banks, they cited financial crime as their reason for this decision. However, the move disproportionately affects legitimate crypto investors, who cannot now access crypto services through their Barclays account.
Standard Chartered Bank (SCB)
SCB’s attitude toward crypto is inconsistent. The bank currently does not allow its customers to use either debit or credit cards on cryptocurrency exchanges. However, the bank has also repeatedly stated that ‘crypto assets’ are here to stay. It is possible that the bank’s policy will change in future, and its account holders will one day be able to access crypto services. For now, however, SCB customers who want to engage with crypto cannot do so through their bank.
Capital One
Capital One currently doesn’t allow its customers to use credit cards to purchase cryptocurrencies. Debit card purchases can sometimes go through successfully on some exchanges, but Capital One customers have frequently reported that they encounter issues when withdrawing funds from exchanges.
NatWest
British retail bank NatWest has turned hostile toward crypto in recent times. After announcing back in April that it would not engage with business customers who accept cryptocurrency payments, it then began to target ordinary account holders who were trying to transfer funds to crypto exchanges. Multiple customers have complained that NatWest is now blocking their crypto-related transactions, and telling them that such transactions go against the bank’s new policy.
Lloyds Banking Group
The Lloyds Bank Group includes a number of banking entities, such as Halifax, Bank of Scotland, and MBNA. Since 2018, none of these banks have allowed their customers to buy cryptocurrencies with a credit card. Customers of these banks also report that debit card purchases, deposits, and withdrawals from exchanges are inconsistent. At times, the transactions are quickly approved, and on other occasions, the bank flags them as fraudulent transactions, for no reason other than for the fact they are crypto-related
Wells Fargo
Wells Fargo has made moves toward creating an in-house cryptocurrency for its banking operations (that they alone control — an antithesis of Bitcoin’s decentralized vision). However, it emerged that the bank doesn’t support cryptocurrency-related transactions when a Wells Fargo representative named Josh delivered this curt response to a customer who asked the bank about their crypto policy on Twitter:
“Thanks for reaching out to us. Unfortunately, Wells Fargo does not allow transactions involving cryptocurrency. — Josh.”
No joshing around from this crew!
Starling
Starling, a U.K. online banking service backed by Goldman Sachs, recently blocked its customers from sending deposits to cryptocurrency exchanges such as Kraken, Binance and SwissBorg. A spokesperson for Starling reported that this block is intended to be temporary: “we will be reversing this measure as we roll out additional checks specifically for payments to crypto exchanges.” For the moment, however, Starling customers who wish to access crypto exchanges cannot do so through the bank.
Monzo
Monzo, another online banking service, has joined its fellow U.K. banks by preventing customers from transferring money to and from cryptocurrency exchanges. Like other banks, Monzo has cited financial crime fears as their reason for barring users from accessing crypto services. However, this heavy-handed measure has predominantly hit ordinary traders who simply wish to buy and sell their own Bitcoin.
Revolut
Access to crypto exchanges through Revolut is inconsistent. Customers of this online banking service commonly report that their crypto-related transactions are flagged and cancelled. Crypto exchanges that appear to be blocked by Revolut include Kraken and Binance.
Nordic Bank
Nordea Group — trading as Nordic Bank in the U.K. — went one step further than most other institutions when it decided, back in 2018, to ban all of its employees from trading in cryptocurrencies. Even in an industry notorious for its desire to tightly control crypto, Nordea’s decision to exert this level of control over its employees’ private purchasing decisions was unprecedented. Needless to say, Nordea customers who wish to invest in crypto have to look elsewhere!
Credit Card Problems?
Virgin Money, Nationwide, Capital One Bank and Lloyds Banking Group have prohibited customers from buying crypto with credit cards. The banks’ ban against using credit cards to purchase cryptocurrency is an odd policy given that it is legal to use credit cards on U.K. gambling sites . Such sites are renowned for letting interest charges and additional fees run high, and gamblers have no guarantee of winning back a single penny they’ve spent. If banks are sincere in their professed desire to prevent customers from spending money they don’t have, gambling might be a better area to target than crypto!
Why P2P is the solution
Banks find it easy to detect and block transactions made through centralized exchanges.
As more and more users have moved to centralized Bitcoin exchanges like Binance and Kraken, these exchanges have become a single point of failure. If a bank can identify and block the accounts of exchanges, their millions of customers are cut off from purchasing crypto at reasonable prices.
Peer-to-peer Bitcoin trading is the obvious solution. When buyers and sellers connect directly, banks’ ability to dictate what their customers do with their money is stifled.
Overcoming P2P Problems
Unfortunately, P2P exchanges can be slow, expensive and risky. Traditional P2P exchanges rely on you to place trust in an unknown individual and then wait for them to receive your fiat and send you your Bitcoin. This takes time, introduces the risk of fraud and can be a complicated and nerve-wracking experience.
Now CoinsFast offers a way to buy Bitcoin using P2P instantly and safely, without the risk of having your transactions blocked by banks. CoinsFast’s proprietary open banking solution means fiat transfers are conducted privately between sellers and buyers, and CoinsFast instantly releases Bitcoin the moment the payment is sent.
With CoinsFast, you can live the decentralized Bitcoin dream, despite the many hurdles that have been thrown its way.
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