Besides market volatility, crypto companies face another big challenge: traditional banks. In the UK for example, some banks categorically refuse to work with crypto companies.
Crypto companies are not welcome in the UK
In the UK, there is no comprehensive digital asset regulation yet. On the other hand, the few fixed rules have become too demanding for crypto companies.
When it comes to the banking sector in particular, crypto companies agree on one point: UK banks clearly refuse to collaborate with them.
In the UK indeed, crypto companies don’t just have to deal with job rejections. The freezing of accounts also adds to the batches of problems. And when some banks are lenient enough, they require documentation and information on how crypto companies monitor customer transactions.
To maintain business operations in the UK, crypto companies must then use payment service providers such as BCB Payments and Stripe.
UK banks less receptive than US banks
In recent weeks, relations between UK banks and crypto companies have soured. Result: Crypto companies carried Complaint to Prime Minister Rishi Sunak’s government. The latter is considered a supporter of crypto. As proof, he is currently working on a project to make the UK a global crypto hub. He also wants to tax the CBDC.
Tom Duff-Gordon, vice president of international policy at the Coinbase exchange, told Bloomberg : “The British banking reaction was more acute than that of the EU”. Result: this year, venture capital investments in crypto companies have fallen by 94% in the UK. However, there is a 31% increase in European countries.
Each country has its own way of regulating the crypto market. The United States and the United Kingdom believe that the best strategy would be to tighten regulations.
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