13 Best Crypto-Friendly Banks in the UK

Most UK banks remain risk-averse to cryptocurrency, with many prohibiting interactions altogether.

Despite this, the market can’t be ignored. With a $1 trillion market capitalisation, the latest data suggests there are 420 million crypto users worldwide, with 3.7 million in the UK alone.

It is thought some 10% of UK adults hold some form of crypto and, as such, the government has recently announced plans to regulate the industry to benefit from the “confidence, credibility and regulatory clarity” of the existing system. 

For some users, crypto represents a philosophical decision, a more democratic financial system that will power the metaverse and promote financial freedom.

Crypto-friendly banks are an essential middle ground between the old and new financial systems for these users. They’re also a means to extract ‘fiat’ (crypto terminology for government-issued currency) and transform it into decentralised digital assets.

This article will explore which UK banks currently classify as crypto-friendly, including their pros and cons. We’ll also cover which banks remain the most resistant.

What Is The Best Crypto-Friendly Bank In The UK?

When selecting the best crypto-friendly bank for your business in the UK, I think it’s essential to find one that offers seamless integration of crypto transactions and provides the necessary regulatory support. From my perspective, Revolut Business really stands out. It’s user-friendly, FCA-regulated, and allows businesses to manage both fiat and crypto assets in one place. That all-in-one solution is invaluable for most companies, especially if you want simplicity and flexibility.

If your business is more heavily involved in crypto, then Xace is a fantastic option. It’s designed specifically for crypto businesses, and its multi-currency accounts make handling crypto and fiat much smoother. Plus, with low fees and easy crypto exchange options, it’s a solid choice for anyone needing a deeper crypto integration into their day-to-day banking.

On the other hand, Monzo Business is excellent for smaller businesses that might be new to crypto. While it doesn’t offer as many crypto-specific features as Revolut or Xace, its simplicity and transparency can be appealing if you’re just starting out and don’t need a full-on crypto solution yet.

Cashaa is worth considering if you’re focused on crypto payments and want a fully integrated bank with crypto transactions. It’s a niche platform, but it’s great for businesses that want to ensure their banking and crypto operations are closely aligned.

Barclays, RBS, NatWest, and Nationwide are becoming more crypto-friendly for those who prefer more traditional banking institutions. Although they might not have the same level of crypto-specific services as Revolut or Xace, they’re a safe bet if you want a familiar banking experience but still need the option to handle crypto transactions.

The UK’s Best Crypto-Friendly Banks in 2025

Best Crypto-Friendly Banks	Best For	Visit the Bank
1. Revolut	Best for startups and SMEs looking for a simple way to manage crypto and fiat payments with basic crypto services.	Apply at Revolut
2. Monzo	Best for freelancers and solopreneurs who need a straightforward, user-friendly platform for both traditional and basic crypto transactions.	Apply at Monzo
3. Xace	Best for crypto-native businesses that require advanced features such as multi-currency wallets and deep crypto integration for global transactions.	Apply at Xace
4. Cashaa	Best for crypto businesses looking for a specialised bank offering integrated crypto services, like crypto-to-fiat conversions and secure wallets.	Apply at Cashaa
5. Orounda	Best for global crypto businesses needing tailored banking solutions with advanced crypto and fiat capabilities, including real-time transfers.	Apply at Orounda
6. Royal Bank of Scotland (RBS)	Best for traditional UK businesses just starting to explore crypto, offering moderate crypto capabilities alongside established banking services.	Apply at RBS
7. NatWest	Best for medium-sized businesses seeking a stable bank with expanding crypto capabilities, including crypto payments and trading features.	Apply at NatWest
8. Nationwide	Best for small UK businesses entering the crypto space, offering basic crypto services and trusted banking alongside.	Apply at Nationwide
9. Barclays	Best for large enterprises with select crypto needs, offering traditional banking services with some integration of crypto transactions.	Apply at Barclays
10. Wirex	Best for high-volume crypto businesses wanting advanced crypto tools, including exchange features, DeFi integrations, and crypto-to-fiat payments.	Apply at Wirex
11. Juno	Best for tech-savvy crypto businesses needing a fully digital platform with integrated crypto and fiat management, including staking and yield-earning options.	Apply at Juno
12. Monese	Best for international freelancers and small businesses who need multi-currency support with some crypto functionality.	Apply at Monese
13. PayPal Business	Best for businesses looking for a trusted, global platform to accept both crypto and traditional payments with ease and security.	Apply at PayPal Business

What are the UK’s top Crypto-Friendly Banks?

Revolut

Revolut Business lets you manage both your company’s traditional finances and cryptocurrencies in one seamless platform. You can buy, hold, and sell 90+ cryptocurrencies directly from the app, alongside your regular payments and multi-currency accounts. 

For international businesses, Revolut offers fast payments in over 30 currencies and corporate cards that help with smooth team spending. However, a key thing to remember is that your crypto holdings aren’t FSCS protected, so assessing your risk tolerance is essential.

I think Revolut Business is perfect for businesses integrating cryptocurrency into their regular operations, especially when you need the flexibility of managing both traditional and crypto assets on one platform. But it might not be the best fit if you’re after more advanced crypto tools, like a dedicated wallet or full trading features.

Features

• 90+ cryptocurrencies available for trading
• Multi-currency accounts (over 30 currencies)
• Corporate cards (physical and virtual)
• Real-time financial management tools (budgeting, reporting, forecasting)
• Role-based user permissions for team control
• Fast, low-cost international payments (SEPA, SWIFT)
• Regulatory compliance with UK standards

Monzo

Monzo offers business accounts that allow payments to regulated crypto exchanges like Coinbase and Gemini. While not explicitly designed for crypto businesses, it’s a solid option for UK SMEs occasionally interacting with the crypto space. Monzo’s key strength lies in its simplicity and transparency, making it a friction-free choice for businesses with light crypto exposure who want to avoid the complexity and risk appetite of high-risk fintechs.

It’s a reliable, no-fuss platform for small businesses needing to send or receive payments to and from crypto exchanges, without any of the headaches of dealing with crypto-specific accounts. However, it’s important to note that crypto is not integrated into the app—there’s no in-app trading or wallet functionality. While Monzo is generally permissive, there can be occasional blocks or manual reviews for large or high-risk crypto transactions.

Features

• GBP accounts with sort code and account number
• Faster Payments and Direct Debits for swift payments
• Accounting integrations (Xero, QuickBooks) for smooth bookkeeping
• ‘Pots’ for saving, budgeting, and separating funds
• Instant payment notifications and clear transaction histories for easy tracking

Xace

Xace is one of the few UK-based fintechs that caters to crypto-native businesses, including exchanges, NFT platforms, Web3 projects, and iGaming firms. If your company is linked to crypto and you’re struggling with traditional bank account setups, Xace might just be the alternative you need. They provide IBAN and sort code accounts, facilitating seamless fiat transfers to and from crypto exchanges. This is a massive plus for crypto-focused companies looking to maintain regulatory compliance without the usual banking headaches.

What sets Xace apart is its willingness to support higher-risk sectors that many other banks shy away from. This makes it a strong option for businesses operating in the crypto, gaming, and Web3 spaces.

Features

• EUR and GBP accounts with dedicated IBANs
• Virtual and physical cards for spending flexibility
• SEPA, Faster Payments, and SWIFT for international transfers
• Personal and business accounts for greater account flexibility
• Industry-specific onboarding support for high-risk sectors like crypto and gaming

Cashaa

Cashaa is designed with crypto businesses in mind, offering a comprehensive platform for firms that have struggled to secure banking services from mainstream banks. If you’re in the crypto sector and need reliable, compliant banking, Cashaa could be a strong alternative. It allows you to seamlessly manage fiat (GBP, EUR, USD, INR) and crypto (BTC, ETH, USDT, etc.) within one platform, making it a one-stop shop for businesses in the crypto space.

Cashaa’s standout feature is its ability to support fiat and crypto transfers, including direct transactions to and from exchanges. Plus, it offers on/off-ramp services and custodial wallets, making it a solid choice for businesses needing a flexible solution focusing on compliance. Cashaa’s compliance infrastructure is tailored for high-risk clients, giving businesses typically turned away by traditional banks a path to secure and regulated banking.

Features

• Multi-currency business accounts (GBP, EUR, USD, INR)
• Ability to send and receive both crypto and fiat
• Custodial and non-custodial crypto wallets
• Invoicing tools and SWIFT/SEPA payments for business needs
• Compliance tools tailored for high-risk sectors (KYC/AML)
• Dedicated relationship managers for premium users

Orounda

Orounda offers a crypto-friendly banking solution, providing corporate bank accounts with direct International Bank Account Numbers (IBANs). While it doesn’t offer crypto buying or selling services, it positions itself as a reliable banking partner for businesses in the crypto space, offering tailored payment processing solutions.

Orounda is an appealing choice for crypto-related businesses thanks to its ability to support EU and non-EU jurisdictions, making it a solid option for international operations. If you’re running a crypto business and need secure, fast, cross-border transactions, Orounda facilitates SEPA and SWIFT wire transfers with low fees and high efficiency. It’s especially suitable for firms looking for flexible banking that focuses on speed and security in managing crypto transactions.

Orounda offers an outstanding balance of crypto-friendly services without being fully dedicated to crypto, making it an excellent option for businesses involved in the crypto space that don’t require full crypto trading or holding functionality.

Features

• Direct IBANs for corporate accounts (settlement and clearing accounts)
• SEPA and SWIFT wire solutions for fast, secure cross-border payments
• Crypto-friendly banking environment, supporting crypto-related transactions
• Dedicated online banking platform with advanced tools for transaction management
• Remote account opening with express one-business-day setup
• 24/7 back-office support
• Virtual IBANs available for UK businesses
• Pay-ins and payouts to/from payment processors and customer accounts

Royal Bank of Scotland

RBS offers a solid, traditional banking service with a strong focus on security and regulation. It is ideal for businesses that have limited exposure to crypto but need occasional access to crypto-related transactions. While not a fully crypto-friendly option, RBS does permit transfers to and from major crypto exchanges, but with strict limits in place.

As of 16 March 2023, RBS has introduced caps on crypto-related Faster Payments and debit card transactions for business accounts. These limits are set at £1,000 per day and £5,000 per month. Additionally, RBS prohibits using credit or charge cards for crypto purchases, citing fraud risk concerns.

These restrictions make RBS less suitable for businesses with high-volume crypto transactions. However, if you’re running a company that only needs to process occasional crypto payments, I think RBS could be a reliable, secure option. The bank offers a stable, regulated environment with a user-friendly support centre to help navigate crypto policies.

Features

• Crypto-related Faster Payments and debit card transactions are capped (£1,000/day, £5,000/month)
• Transactions to and from major crypto exchanges permitted (with limits)
• Debit card and Faster Payments available, but crypto-related payments subject to restrictions
• 3% cash advance fee on credit card transactions
• Up-to-date support centre with crypto-related policies and guidance
• Well-established banking infrastructure focused on security

NatWest

NatWest offers UK-based businesses a secure, regulated way to interact with cryptocurrency, albeit with some limitations. It’s not designed for crypto-first companies, but for those needing occasional or low-risk crypto exposure, I think it provides a solid, traditional banking solution with reasonable flexibility.

Part of the same group as RBS, NatWest imposes strict limits on crypto transactions: £1,000 per day and £5,000 per month across all accounts (business, personal, and commercial). It also entirely blocks using credit and charge cards for crypto purchases. These measures are primarily in place to protect against fraud and financial loss, which are common concerns in crypto.

Despite these restrictions, NatWest allows debit card and Faster Payments transactions to major exchanges within the stated limits. NatWest balances traditional banking security and light crypto access for businesses, prioritising compliance, fraud protection, and clear policies. However, if your business requires more flexibility or deeper integration with crypto services, you may find NatWest’s offering too limiting.

Features

• £1,000 daily and £5,000 monthly transaction limits for crypto exchanges
• Debit card and Faster Payments transactions supported (within limits)
• No credit/charge card crypto purchases allowed
• Dedicated support centre for crypto-related inquiries
• Strong anti-fraud measures and customer protection
• Secure, regulated banking environment with traditional banking stability

Nationwide

Nationwide offers UK businesses a secure, regulated option for occasional crypto-related payments. It’s not ideal for crypto-heavy firms, but for companies that only need light crypto exposure, it’s a safe choice that balances traditional banking with some crypto functionality.

The bank permits crypto payments via debit card and Faster Payments but enforces strict daily limits. Most accounts are capped at £5,000 per day, but if you have a FlexOne account, that limit drops to just £100. Any payments above these limits are automatically declined. Nationwide also prohibits using credit cards for crypto purchases and blocks payments to certain exchanges, including Binance. Additionally, payments via digital wallets like Apple Pay and Google Wallet are subject to the same daily limits.

While these restrictions might be frustrating for businesses that need frequent or high-volume crypto transactions, Nationwide’s regulated environment makes it a strong option for companies that only require occasional crypto payments. If your firm prioritises security and compliance, and you don’t need to dive deep into the crypto space, Nationwide is a solid choice for staying within the bounds of traditional banking.

Features

• £5,000 daily limit on crypto purchases via Faster Payments and debit card
• Credit card crypto purchases not allowed
• Digital wallet payments also limited to £5,000 per day
• Binance transactions are blocked
• Free deposits and withdrawals to/from licensed crypto exchanges
• Supports standard business accounts with online banking

Barclays

Barclays might not advertise itself as a “crypto-friendly” bank. Still, it provides a reliable and secure way for businesses to access the crypto world, especially those who value stability and a trusted legacy. It’s a solid option for companies that want to dip their toes into crypto without going all-in.

While Barclays no longer partners with Coinbase, it does allow payments to and from FCA-registered, regulated crypto platforms, like Kraken or Gemini. The key here is that the exchanges must meet Barclays’ compliance standards. As part of its fraud prevention measures, Barclays may block or restrict the transaction if an exchange is deemed high-risk or unregulated. This makes sense for businesses that want a reliable, secure route into crypto without taking on unnecessary risks.

Barclays offers a safe option if you’re a business that values credibility and long-term engagement in the crypto space. It’s particularly well-suited for companies using regulated exchanges and are more concerned about security and stability than quick crypto access.

Features

• Allows payments to/from most FCA-registered crypto exchanges
• Debit and credit card purchases permitted for crypto
• Exchange-specific risk controls—some platforms may be restricted
• Strong anti-fraud monitoring for all crypto-related activity
• Non-sterling transaction fee of 2.99% (on international crypto purchases)

Wirex

Wirex is an all-in-one platform for those who navigate fiat and digital currencies. Whether you want to spend crypto directly, earn passive rewards, or simply manage both worlds seamlessly, Wirex has built a comprehensive toolkit for crypto-savvy users. I think it’s an excellent option for businesses that need flexibility, offering everything from a crypto debit card to staking and crypto-backed savings, all within one easy-to-use dashboard.

One of the biggest draws of Wirex is its ability to let users spend crypto and fiat seamlessly. The Wirex debit card enables you to use your crypto like any other currency in real-world transactions, and with its CryptoBack™ rewards, you can earn up to 8% cashback in crypto. But, as useful as Wirex is, one crucial thing to remember is that it operates outside the direct supervision of the UK’s Financial Conduct Authority (FCA) for its crypto services. If you’re in the UK and need the reassurance of FCA oversight, it may not be the right fit. However, Wirex still offers competitive features, and its ease of use and wide crypto support make it a solid choice for businesses looking to integrate crypto with their everyday operations.

Features

• Spend and stake crypto all from one platform, with integrated tools for both.
• CryptoBack™ rewards program: Earn up to 8% cashback in crypto on purchases
• Crypto savings accounts: Earn up to 16% interest on your crypto deposits
• Crypto-to-fiat debit card: Use your crypto directly in everyday transactions
• Instant transfers: Convert between crypto and fiat instantly at competitive rates
• Access to crypto-backed loans: Tap into liquidity without selling your crypto

Juno

Juno is built for you if you’re a crypto-native business or individual. It’s not just crypto-friendly—it’s crypto-first. Designed from the ground up to support blockchain-powered finance, Juno offers a robust suite of services that go well beyond what traditional UK high street banks can provide. For businesses or investors who are deeply involved in the crypto space, it’s a game-changer. But keep in mind, it’s not a traditional bank, so while it offers unique opportunities, it also comes with some limitations.

Juno’s standout feature is its fully integrated approach to fiat and digital currencies. Unlike banks that merely accommodate crypto, Juno embraces it with services like crypto trading, staking rewards, crypto-backed savings, and seamless on-chain payments—all from a single, user-friendly platform. One of the most impressive features is the Juno debit card, which lets you spend both fiat and crypto directly in everyday transactions. There is no need to cash out first—just use your stablecoins or digital assets like regular currency.

Juno offers a reliable and innovative solution for businesses looking to bridge the gap between crypto and fiat. Still, it’s not for businesses needing traditional banking services or regulatory protections like FSCS. It’s best suited for users who are comfortable navigating digital assets and looking for an alternative to traditional banking systems.

Features

• Trade, stake, and manage crypto assets from one intuitive dashboard
• Smart Treasury: High-yield savings for stablecoin holders, helping you earn passive income
• Instant ID verification for quick and easy onboarding
• Integrated crypto wallet + fiat account for managing both worlds from one place
• Crypto-to-fiat debit card: Spend your digital assets directly in real-world transactions
• Crypto-backed loans and lending tools: Access liquidity without selling your assets

Monese

Monese offers an efficient and straightforward e-money account that’s crypto-tolerant, making it an ideal choice for businesses with light crypto exposure. If you’re a freelancer or small business owner dabbling in crypto without fully committing to a crypto-first bank, Monese could be the perfect middle ground. Its easy setup and mobile-first approach appeal to those who value simplicity over complexity.

While Monese doesn’t centre itself around crypto, it does allow transfers to and from FCA-registered exchanges, including popular ones like Coinbase and Binance UK. However, it’s important to note that Monese is more crypto-permissive than crypto-proactive, so you may occasionally face flags or transaction delays due to its risk checks. If you’re a side hustler or small business with occasional crypto needs, Monese offers a hassle-free, flexible solution without going full crypto.

Features

• GBP and EUR business accounts
• Mobile-first banking experience with easy onboarding
• SEPA and Faster Payments support
• Physical and virtual debit cards for easy access
• Multi-language support for international teams

PayPal Business

PayPal is a well-known, widely trusted payment processor that allows personal users to buy, sell, and hold cryptocurrency. However, if you’re a UK business, you won’t be able to buy or sell crypto directly through your business account. That said, you can transfer funds to and from FCA-registered exchanges like Coinbase and Binance, although these transactions are subject to monitoring and risk-based limits.

For businesses, PayPal is more about payment processing than crypto trading. It’s a solid option for e-commerce businesses that rely on PayPal for seamless payments, and it’s handy if you want to keep your business and personal finances separate but still interact with crypto occasionally. While it isn’t built specifically for crypto businesses, PayPal offers a reliable, widely trusted platform with a straightforward, no-frills payment approach.

Features

• Business payment processing for websites, invoices, and marketplaces
• Accepts payments via credit/debit card, PayPal, Apple Pay, and other methods
• Integrates with popular e-commerce platforms like Shopify and WooCommerce
• Instant withdrawals to UK bank accounts
• Supports invoicing, subscriptions, and recurring payments

Which UK banks are not crypto-friendly?

Almost half the UK’s banks do not support cryptocurrency in any form, with most regulated banks blocking some transactions and exchanges.

Banks unfriendly to crypto include:

• First Direct
• Lloyds
• Halifax
• Metro Bank
• HSBC
• Santander
• Starling Bank
• The Co-operative Bank
• TSB Bank
• Virgin Money
• Wise
• Fire (Ireland)

What is a Crypto-Friendly Bank?

A crypto-friendly bank allows you to integrate cryptocurrencies like Bitcoin, Ethereum, and stablecoins into your regular banking. These institutions recognise the growing role of digital assets and provide services designed to meet the needs of individuals and businesses in the crypto space.

A crypto-friendly bank offers several advantages for those who want to use cryptocurrencies alongside traditional finance. It can streamline daily transactions, making managing both fiat and digital currencies easier in one place. I think it’s especially beneficial for businesses that need to handle crypto payments while keeping operations smooth and efficient in the traditional financial system. With these banks, you can bridge the gap between digital assets and traditional currencies without the hassle of managing separate accounts or systems.

What Makes a Bank Crypto-Friendly?

A crypto-friendly bank is designed to cater to individuals and businesses within the cryptocurrency ecosystem. These banks integrate digital and fiat currencies, making managing both types of assets easier on one platform. Here’s what makes them stand out:

1. Support for Crypto Transactions

Crypto-friendly banks enable seamless deposits and withdrawals to exchanges, unlike traditional banks that may impose delays or restrictions.

• Deposits & Withdrawals: Easily convert between fiat and crypto.
• Transfers to Exchanges: Payments to platforms like Binance or Coinbase are fast and hassle-free.

Some banks may impose limits or require compliance checks for larger transactions.

2. Integrated Crypto Wallets

These banks often offer wallets to store, manage, and transfer digital assets directly from your account.

• Unified Account Management: Manage both fiat and crypto in one place.
• Secure Access: Built-in security features like 2FA ensure your assets are safe.

These wallets may have withdrawal limits due to regulatory requirements.

3. Debit Cards for Crypto

Crypto-friendly banks provide debit cards that link to both fiat and crypto accounts, allowing you to spend crypto directly.

• Crypto-to-Fiat Spending: Use your crypto at retailers, online platforms, or ATMs, with automatic conversion to fiat.

These cards may involve fees, including transaction and conversion charges, and have regional restrictions.

4. Crypto-Backed Financial Products

Some banks offer crypto-backed loans, allowing you to use your digital assets as collateral.

• Leverage Your Crypto: Access liquidity without selling your assets.

These loans typically come with strict eligibility and monitoring requirements.

5. Blockchain-Based Services

Blockchain technology enables faster, more secure payments, especially for international transfers.

• Faster Transfers: Blockchain payments are quicker and more cost-effective.
• Improved Security: A decentralised system reduces fraud risk.

Challenges include regulatory uncertainty and potential delays during high-traffic periods.

Limitations & Challenges

• Regulatory Compliance: Crypto-friendly banks follow strict AML and KYC procedures.
• Transaction Limits: Limits may apply to crypto transfers based on account verification.
• Fraud Risk: While security is enhanced, the risk of fraud remains.
• Regulatory Uncertainty: Rapid changes in crypto regulations can cause disruptions.

Despite these challenges, crypto-friendly banks offer crucial benefits like seamless transactions, integrated wallets, and innovative products for crypto users. However, staying informed about regulatory changes and potential risks is essential.

Why Choose a Crypto-Friendly Bank?

Why Choose a Crypto-Friendly Business Bank?

• Seamless Fiat & Crypto Management: Manage both fiat and digital currencies in one account, streamlining your finances and cutting down on administrative time.
• Quick, Unrestricted Crypto Transfers: Effortlessly transfer funds to and from major exchanges like Coinbase or Binance without delays or restrictions.
• Access to Crypto-Backed Loans: Secure funding without selling your assets by using your crypto holdings as collateral, providing flexibility for business needs.
• Faster, Cheaper Cross-Border Payments: Blockchain-based services offer quicker, more affordable international payments—ideal for global operations.
• Attract Crypto-Friendly Customers: Accepting crypto payments can position your business as forward-thinking, attracting a growing customer base.
  

Why Not Choose a Crypto-Friendly Business Bank?

• Regulatory Uncertainty: The evolving legal landscape for crypto could lead to unexpected changes, impacting fees or service access.
• Limited Traditional Banking Support: Some crypto banks may lack full GBP or fiat banking services, complicating basic functions like paying staff or suppliers.
• Fraud & Cybersecurity Risks: Cryptos are prime targets for fraud, requiring additional security measures and potentially higher insurance costs.
• Higher Transaction Fees: Crypto-related transactions, such as conversions or blockchain payments, could have higher fees, especially for frequent use.
• Limited Regional Availability: Access to crypto-friendly banks may be restricted in certain areas, leading to delays or more complex banking arrangements.

How to Choose a Crypto-Friendly Business Bank

Choosing the right crypto-friendly business bank is essential for your operations, especially if you’re heavily involved in cryptocurrency. However, the process isn’t always straightforward. Let’s break down the key factors to consider when selecting a bank and some potential pitfalls.

Key Factors to Consider

1. Compliance Requirements:
Crypto-friendly banks have strict compliance procedures, including ID verification, proof of funds, and anti-money laundering (AML) checks. Expect to provide company registration details, business activity descriptions, and personal ID documents.
Tip: Have all necessary documentation ready to avoid delays.

2. Onboarding Speed:
Crypto-friendly banks usually offer faster onboarding than traditional banks, which is crucial in the fast-moving crypto space.
Tip: To expedite the process, look for banks with online setups and minimal in-person requirements.

3. Geographic Limitations & Payment Methods:
Not all crypto-friendly banks support international payments or various payment methods. If your business operates globally, ensure the bank supports SEPA, SWIFT, FPS, and CHAPS.
Tip: Check that your bank can handle cross-border payments, especially if you plan to expand internationally.

4. FCA Registration:
Make sure the bank is FCA-registered. This ensures it complies with UK financial laws and protects your funds.
Tip: Verify the bank’s registration status via the FCA’s Financial Services Register.

Potential Drawbacks

1. High Compliance Burden:
The rigorous onboarding process may cause delays. If you need to set up quickly, this could add friction.
Tip: Choose a bank with a reputation for efficient onboarding if speed is a priority.

2. Limited Services & Geographic Reach:
Some banks may restrict services to specific regions or payment options, which could be limiting if you operate internationally.
Tip: Ensure the bank supports the payment methods you need, particularly if you require cross-border transactions.

3. Regulatory Risk:
Regulatory shifts could affect how crypto-friendly banks operate as the crypto space is still evolving.
Tip: Weigh the regulatory risks against the benefits for your business model.

4. Higher Transaction Costs:
Some banks charge higher fees for crypto transactions, like converting digital assets to fiat.
Tip: Research fee structures to ensure they align with your transaction volume.

5. Limited Traditional Banking Services:
Crypto-friendly banks might not offer broader services like business loans or savings accounts.
Tip: If you need full-service banking, look for a bank that covers both crypto and traditional financial services.

Crypto Banking Risks & Regulatory Updates

As cryptocurrency evolves, staying informed about regulatory changes and understanding your bank’s risk appetite is crucial for crypto-friendly businesses. Here’s a quick rundown of key points.

FCA’s Crypto Regulation

The FCA has tightened its stance on cryptocurrencies, focusing on compliance with Anti-Money Laundering (AML) and Know-Your-Customer (KYC) regulations. Crypto assets are treated as commodities, not currencies, meaning businesses must follow strict standards to avoid financial crime. The FCA also requires businesses to register and comply with these regulations and is cracking down on misleading crypto promotions.

Why it matters: Non-compliance could result in penalties or business suspension. Staying updated is crucial to avoid disruption.

Bank Risk: Freezing Accounts and Blocking Transactions

Many banks still consider crypto risky and may freeze accounts, block transactions, or close them if they detect suspicious activity or non-compliance.

• Freezing Accounts: Large or unclear transactions could trigger account freezes.
• Transaction Delays: Cross-border crypto transfers or high-volume payments may face delays or blocks.
• Unexpected Closures: Some banks may close accounts suddenly, disrupting your business.

Why it matters: Be prepared for potential disruptions and ensure your documentation and compliance are current to minimise risk.

Transparency and Compliance

Maintaining clear records and staying compliant is essential.

• Documentation: Keep detailed records of funds, transactions, and counterparties to demonstrate compliance.
• Regular Reviews: Update your internal compliance procedures to reflect the latest FCA guidelines.
• Communication with Banks: Stay in regular contact with your bank to avoid misunderstandings and disruptions.
  

Why it matters: Transparency reduces risk and builds trust with your bank and regulators.

Crypto-friendly Bank FAQs