CryptoUK Requests Government Intervention On Bank Limits

CryptoUK sent a letter to the government expressing “deep concern” about recent moves by banks to limit purchases of cryptocurrencies. The group also suggested making a “white list” of exchanges that shouldn’t be affected by such limits.

In the past few months, NatWest, HSBC, Nationwide Building Society, and Santander have all put limits on how much their customers can buy cryptocurrency. They did this because they were worried about regulations and scams.

In a letter to Andrew Griffith, the Economic Secretary to the Treasury, 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 maximize the potential of Web3 to spur UK growth and innovation.”

The trade association says that the government should step in because banks are putting in place these broad restrictions instead of looking at each situation on its own.

The letter suggests that the government bring together bank and cryptocurrency CEOs to find a “viable solution.” One idea is to make a “white list” of platforms that “have engaged with the UK’s regulatory perimeter (either through AML registration or other EMI/MiFid licenses) and to which transactions should be allowed to take place freely.”

In a separate letter to the FCA and Payment Systems Regulator, CryptoUK says that it understands that regulators may not want to get involved in a bank’s business decisions, but that “in this case we believe action is needed because of the blanket approaches that have been taken.”