Crypto is unregulated in the UK; there's no consumer protection; value can rise or fall; tax on profits may apply*.
Crypto-friendly banks in the UK
Find out which UK banks and e-money providers are crypto-friendly - and which aren’t.
Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
Estimated reading time: 2 min
Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.
What are the key risks?
1. You could lose all the money you invest
- The performance of most cryptoassets can be highly volatile, with their value dropping as quickly as it can rise. You should be prepared to lose all the money you invest in cryptoassets.
- The cryptoasset market is largely unregulated. There is a risk of losing money or any cryptoassets you purchase due to risks such as cyber-attacks, financial crime and firm failure.
2. You should not expect to be protected if something goes wrong
- The Financial Services Compensation Scheme (FSCS) doesn't protect this type of investment because it's not a 'specified investment' under the UK regulatory regime – in other words, this type of investment isn't recognised as the sort of investment that the FSCS can protect. Learn more by using the FSCS investment protection checker.
- The Financial Ombudsman Service (FOS) will not be able to consider complaints related to this firm or Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA regulated firm, FOS may be able to consider it. Learn more about FOS protection here.
3. You may not be able to sell your investment when you want to
- There is no guarantee that investments in cryptoassets can be easily sold at any given time. The ability to sell a cryptoasset depends on various factors, including the supply and demand in the market at that time.
- Operational failings such as technology outages, cyber-attacks and comingling of funds could cause unwanted delay and you may be unable to sell your cryptoassets at the time you want.
4. Cryptoasset investments can be complex
- Investments in cryptoassets can be complex, making it difficult to understand the risks associated with the investment.
- You should do your own research before investing. If something sounds too good to be true, it probably is.
5. Don't put all your eggs in one basket
- Putting all your money into a single type of investment is risky. Spreading your money across different investments makes you less dependent on any one to do well.
- A good rule of thumb is not to invest more than 10% of your money in high-risk investments.
If you are interested in learning more about how to protect yourself, visit the FCA's website here.
For further information about cryptoassets, visit the FCA's website here.
Cryptocurrency has been on quite the rollercoaster over the last few years but it remains a very risky business. There is extreme price volatility and little protection for your money, as it is largely unregulated. As a result, several UK banks don’t allow any transfers to cryptocurrency exchanges. We’ve done our research and found the UK’s most crypto-friendly banks – and the banks that continue to ban any form of crypto transaction.
What is a crypto-friendly bank?
A crypto-friendly bank is one that places almost no restrictions on interactions with cryptocurrency exchanges. Essentially, if you are a customer at a crypto-friendly bank, you will be able to do the following:
- Purchase cryptocurrency using your debit card
- Make payments to a crypto exchange
- Withdraw money from your crypto wallet and deposit it in your current account
While certainly not all banks are crypto-friendly, the relationship between banks and cryptocurrency platforms has definitely improved over the years. Whereas crypto investors used to sometimes have funds frozen or their accounts closed when transferring money to a cryptocurrency exchange, this very rarely happens now.
Which UK banks are the most crypto-friendly?
We examined the major banks in the UK – both traditional and challenger banking brands – to see which were the most crypto-friendly.
Challenger banks and e-money providers
Monzo
Monzo says that its customer can use a range of cryptocurrency exchanges as part of their personal banking. It does caveat saying that from time to time it may block a small number of transactions based on risk, but overall it can be considered crypto-friendly.
| Deposits/withdrawals to exchanges | |
|---|---|
| Banned exchanges | Binance |
| Crypto credit card purchases | |
| Crypto debit card purchases |
Verdict: Is Monzo crypto-friendly? Yes
Traditional banks
Nationwide
A building society, not a bank, Nationwide has a cautious approach towards cryptocurrency transactions. In March 2023 it banned payments from its credit cards and set a £5,000 daily limit on customers using its debit card to buy crypto. It also restricts transfers to Binance as this exchange has been banned by the Financial Conduct Authority (FCA).
| Deposits/withdrawals to exchanges | |
|---|---|
| Banned exchanges | Binance |
| Crypto credit card purchases | |
| Crypto debit card purchases |
Verdict: Is Nationwide crypto-friendly? Mixed
Barclays
Barclays sits with several other traditional banks with its approach to cryptocurrency. Its stance is that payments aren’t allowed to certain exchanges due to the high number of scams. However, other than Binance, it’s not clear exactly which exchanges are restricted. It’s largely done on a payment by payment basis, depending on which exchange presents the highest risk at that time.
| Deposits/withdrawals to exchanges | |
|---|---|
| Banned exchanges | Binance and “certain exchanges” |
| Crypto credit card purchases | |
| Crypto debit card purchases |
Verdict: Is Barclays Bank crypto-friendly? Mixed
Lloyds Bank
Lloyds Bank is relatively crypto-friendly. It allows its customers to make payments to crypto exchanges using their debit card or current account, but credit card payments are restricted. Due to the price volatility in the cryptocurrency market, buying crypto with your credit card is extremely risky. So it’s not a surprise that a lot of banks don’t allow this.
| Deposits/withdrawals to exchanges | |
|---|---|
| Banned exchanges | Binance |
| Crypto credit card purchases | |
| Crypto debit card purchases |
Verdict: Is Lloyds Bank crypto-friendly? Mixed
Bank of Scotland
As part of the Lloyds Banking Group, Bank of Scotland has exactly the same attitude towards cryptocurrency exchanges as Lloyds Bank. Current accounts and debit cards can be used but credit card payments are restricted.
| Deposits/withdrawals to exchanges | |
|---|---|
| Banned exchanges | Binance |
| Crypto credit card purchases | |
| Crypto debit card purchases |
Verdict: Is Bank of Scotland crypto-friendly? Mixed
NatWest & Royal Bank of Scotland
NatWest and Royal Bank of Scotland are clear in the information they provide customers. Both banks have a dedicated page on their websites answering questions on all things cryptocurrency. When it comes to whether or not they are crypto-friendly, that’s a bit of a mixed bag. They both restrict payments to cryptocurrency exchanges that present the highest financial risk. More recently, they have introduced a daily limit of £1,000 and a 30-day payment limit of £5,000 to cryptocurrency exchanges. Debit cards can be used with some exchanges, but the banks may still restrict certain purchases if there has been a high volume of scams reported relating to that exchange.
| Deposits/withdrawals to exchanges | |
|---|---|
| Banned exchanges | Binance and exchanges that “present the highest risk of financial harm” |
| Crypto credit card purchases | |
| Crypto debit card purchases |
Verdict: Are NatWest and Royal Bank of Scotland crypto-friendly? Mixed
Santander
Santander has announced it will block UK customers from sending real-time payments to cryptocurrency exchanges at an unspecified point during 2023. From 15 November 2022, customer transfers to cryptocurrency exchanges will be limited to £1,000 per transaction and £3,000 in total in any rolling 30-day period. Customers will still be able to receive payouts from crypto exchanges to their Santander account.
Which UK banks aren’t crypto-friendly?
It won’t be a surprise to learn that there are quite a few UK banks that aren’t crypto-friendly. By this we mean they don’t allow their customers to directly transfer funds to a cryptocurrency exchange or allow debit cards to be used for the purchase of cryptocurrency.
Based on our research, these banks are:
- Chase
- First Direct
- Metro Bank
- Halifax
- HSBC
- Santander
- Starling Bank
- The Co-operative Bank
- TSB Bank
- Virgin Money
Crypto-currency is highly volatile and the FCA even warns investors not to put in any money they aren’t prepared to lose. In November 2021, for example, Bitcoin reached £51,032.02 but just a year later in December 2022, the price had fallen by 73.12%, according to the FCA. Yet it still holds a certain lure to some investors and that’s why it’s not banned by all UK banks, in fact from the guide you can see many allow customers to trade in crypto-currency from their current account. If you’re thinking of dipping your toe into the world of crypto-currency make sure you’re aware what your bank will (and won’t) let you do and always remember as with any type of investing nothing is guaranteed.”
Why don’t some banks allow crypto transactions?
Cryptocurrency is considered to be a very high risk and speculative investment. The Financial Conduct Authority (FCA) has gone as far as to say, if you invest in cryptoassets, you should be prepared to lose all your money. There is also the fact that the crypto market is unregulated in the UK.
As a result, a lot of banks don’t want to expose their customers to potential scams or fraud by allowing them to make crypto transactions. This is why some restrict payments to cryptocurrency exchanges, while others have banned them entirely.
Bottom line
There seems to be a difference between the traditional high street banks and the challenger banks. Each bank or banking app has its own policies. Even those that are considered “crypto-friendly” will have some sort of limits in place or caveat that it may block payments if it suspects suspicious activity.
If you are interested in investing in crypto, beyond finding a crypto-friendly bank, you should also consider which crypto exchange to use. To help you out, we’ve listed our best crypto exchanges in the UK. Whether you are a beginner or an experienced trader, it’s important to find an exchange that meets your cryptocurrency needs.
*Cryptocurrencies aren't regulated in the UK and there's no protection from the Financial Ombudsman or the Financial Services Compensation Scheme. Your capital is at risk. Capital gains tax on profits may apply.
Cryptocurrencies are speculative and investing in them involves significant risks - they're highly volatile, vulnerable to hacking and sensitive to secondary activity. The value of investments can fall as well as rise and you may get back less than you invested. Past performance is no guarantee of future results. This content shouldn't be interpreted as a recommendation to invest. Before you invest, you should get advice and decide whether the potential return outweighs the risks. Finder, or the author, may have holdings in the cryptocurrencies discussed.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
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Is binance.com safe for investing £1000.00 ?
Hi Brian,
Firstly, cryptocurrencies aren’t regulated in the UK and there’s no protection from the Financial Ombudsman or the Financial Services Compensation Scheme. Your capital is at risk. Cryptocurrencies are speculative and investing in them involves significant risks.
Secondly, the Financial Conduct Authority has issued a warning about Binance. The exchange offers crypto derivatives, which the UK regulator has banned from sale to consumers in the UK.
If you want to learn more about Binance, please find our review here.
Best,
Kate