lang icon English
Jan. 17, 2025, 4:43 p.m.
40

Survey Reveals Banking Challenges for UK Fintech and Cryptocurrency Firms

A survey of U. K. fintech and cryptocurrency firms revealed that 50% have been denied bank accounts or had existing accounts closed by major U. K. banks. Only 14% were able to secure accounts with one of the “CMA 9” banks without later closure. These figures are concerning for policymakers who have long positioned the U. K. as a global fintech and crypto hub, especially with the new Labour government aiming to promote innovation. The lack of access to essential banking services has hindered the growth of fintech and crypto companies, preventing them from introducing new products and remaining competitive. Katie Harries of Stand With Crypto highlighted that this challenge impacts firms of all sizes and restricts the potential for growth. The survey, conducted by various industry organizations, found that 81% of respondents were U. K. -based, and 98% conducted business in the U. K. Regulatory issues complicate the situation; the U. K. Financial Conduct Authority (FCA) admitted they couldn’t analyze the data on customer account issues in detail. One responding firm noted their rejection despite being FCA regulated. Challenges in accessing banking services were seen as a barrier to 81% of firms, with 70% considering relocating outside the U. K. Marcus Foster from the Startup Coalition explained that firms are exploring costly alternatives in countries like Estonia and Bulgaria due to the lack of banking options.

Countries such as France and Hong Kong have enacted specific laws to ensure that crypto businesses can access banking services, contrasting the U. K. 's restrictive regulatory environment. The U. S. has also seen movement towards supportive regulatory frameworks for crypto, which may threaten the U. K. 's competitive position. Recent developments in U. K. legislation, such as the Financial Services and Markets Act 2023 and a new Property Bill for digital assets, signal progress but often favor established firms. Despite these legal advancements, inconsistency in banking services hampers the growth of the fintech sector. Additionally, the U. K. Government's focus has shifted towards Artificial Intelligence (AI), potentially sidelining crypto and fintech issues. Prime Minister Keir Starmer's recent commitment to AI has raised concerns within the fintech community about whether their needs will be prioritized. In summary, for the U. K. to foster its fintech sector and fulfill government promises, urgent action addressing the debanking issue is essential. Without improvements, the U. K. risks losing talent and investment to more accommodating international jurisdictions.



A recent survey highlights major challenges facing U.K. fintech and crypto firms, revealing that 50% have encountered account rejections or closures by major banks, while only 14% reported a seamless account-opening experience. This predicament raises alarms about the U.K.'s ambitions in fintech and digital innovation, especially given the Labour Government's commitment to fostering growth. Katie Harries from the Stand With Crypto U.K. initiative warned that these banking barriers stifle business development across various sectors. Simon Jennings of the U.K. Cryptoasset Business Council concurred, noting that banking difficulties undermine governmental goals for the digital asset sector. Alarmingly, 81% of firms consider banking access crucial for their success, with many contemplating relocating to more accommodating jurisdictions like France and Hong Kong. Despite advances in digital asset regulations, banking remains a significant impediment. To sustain its fintech leadership, the U.K. must urgently address these de-banking challenges to avert a talent and investment exodus, particularly as interest in artificial intelligence grows. Reforms are essential to ensure the future viability of the fintech and crypto industries.

Create a post

based on this news in the Content Maker

I'm your Content Manager, ready to handle your first test assignment

Language

Learn how AI can help your business.
Let’s talk!

Content Maker

Our unique Content Maker allows you to create an SEO article, social media posts, and a video based on the information presented in the article

news image

Last news

The Best for your Business

Feb. 6, 2025, 2:58 a.m.

Are the Internet and AI affecting our memory? Wha…

Adrian Ward, a seasoned driver in Austin, Texas, faced sudden disorientation last November when his Apple Maps malfunctioned, revealing his reliance on technology for navigation.

Feb. 6, 2025, 1:48 a.m.

Abstract Crypto: Navigating The Cutting-Edge Of B…

Cryptocurrency has evolved far beyond Bitcoin, ushering in a new trend called “abstract crypto,” which aims to extend blockchain technology’s applications beyond traditional uses.

Feb. 6, 2025, 1:32 a.m.

World leaders set to vie for AI domination at Par…

**Summary of the Upcoming AI Summit in Paris** This Monday, amidst the historical elegance of the Grand Palais in Paris, a global summit will convene, drawing representatives from 80 countries, including world leaders, tech leaders, and academics, to discuss the fast-evolving field of artificial intelligence (AI)

Feb. 6, 2025, 12:18 a.m.

Blockchain devices record surge; Fujitsu aims sus…

**Trinity Audio Player Preparation** A recent report from SNS Insider has highlighted the remarkable growth of blockchain devices, which are predicted to surge from $900 million to $16

Feb. 6, 2025, 12:12 a.m.

Machine-learning pioneer Yann LeCun on why “a new…

The introduction of R1, an AI model developed by the Chinese startup DeepSeek, has recently created a significant impact in the technology sector.

Feb. 5, 2025, 10:49 p.m.

Vietnam Blockchain Association Supports Resolutio…

Hanoi, Vietnam, February 5, 2025 (GLOBE NEWSWIRE) -- On February 3, the Federal Court in Brooklyn, New York, unveiled the identity of the individual responsible for the $47 million Kyber Elastic attack.

Feb. 5, 2025, 10:37 p.m.

6 unsettling thoughts Google's former CEO has abo…

Eric Schmidt, the former CEO of Google, is contemplating artificial intelligence—its interaction with humans and its potential to transform, or even replace, democracy.

All news