Concerns grow about the UK’s position in the crypto race following findings that banks are blocking or delaying transactions to purchase digital assets.
IG Group has called for an overhaul of the UK’s crypto regulatory framework following research which reveals widespread interference by banks in crypto-related transactions.
According to IG’s recent survey, 40% of UK crypto investors have experienced a blocked or delayed payment when attempting to purchase digital assets.
The company, known for its online trading platforms and educational resources, published its findings on August 20. The survey, conducted by research agency Norstat, involved 2,000 UK adults and 500 active crypto investors.
Michael Healy, UK Managing Director at IG, responded to the findings by warning that the UK is in a “damaging position” where millions of people face barriers to crypto access based solely on their banking provider.
“This kind of behaviour is at best anti-consumer, at worst anti-competitive – and it’s not backed by the public,” Healy said.
IG found 42% of respondents oppose banks interfering in crypto transactions. However, 33% support such actions, indicating a divided public sentiment.
Among those affected, 35% switched banks to one that allows crypto transactions, 29% submitted formal complaints, 22% adjusted transaction sizes and 10% abandoned crypto investing altogether.
Healy added this overreach from banks is only possible because there’s still no clear UK regulatory framework in place governing crypto.
“Until that changes, responsible firms and investors will be penalised,” he said. “If the government is serious about making the UK a home for crypto innovation, it needs to act. We urgently need the kind of clear, comprehensive rules we’re already seeing in the US and Europe.”
Playing catchup
Amid growing fears that the UK is falling behind, the government has begun to take action. On April 29, HM Treasury published draft legislation, the Financial Services and Markets Act 2000 (Cryptoassets) Order 2025, to bring crypto firms into the regulatory perimeter.
The proposed framework aims to regulate crypto exchanges, dealers and agents, impose standards on transparency and consumer protection and create new rules for stablecoin issuance and crypto custody. The UK is also exploring a transatlantic sandbox for digital securities in collaboration with the US.
Chancellor Rachel Reeves stated: “Through our Plan for Change, we are making Britain the best place in the world to innovate – and the safest place for consumers.”
The Financial Conduct Authority has released discussion and consultation papers outlining its proposed approach to regulating cryptoasset activities, with further rules on market abuse and disclosures expected later this year.
Lessons from across the pond
The US has emerged as a digital asset powerhouse under President Donald Trump, with the recent passage of the GENIUS Act, the first federal stablecoin bill, marking the latest milestone.
Trump’s support for the crypto sector is unsurprising, given that over $26m was donated by crypto companies and investors to his 2025 campaign, according to Brave NewCoin.
While the US now offers a more favourable environment for crypto investors, thanks to regulation and moves like the Department of Justice disbanding its cryptocurrency fraud unit, it wasn’t always this way.
Under the Joe Biden administration, crypto investors complained about being debanked, echoing the concerns now surfacing in the UK. Trump capitalised on these frustrations, stating many crypto investors had been unfairly targeted.
This perspective allowed him to position himself as a defender of financial freedom and claimed banks often act under pressure from federal regulators, an argument which aligns with IG’s call for clearer rules.
