Letter: UK banks’ approach to crypto risks choking off the sector

A letter published by the Financial Times argues that UK banks’ approach to crypto is at risk of choking off the sector. The intervention highlights continuing tension between traditional financial institutions and businesses operating in digital assets and related services.

Banks play a central role in allowing companies to hold accounts, process payments and access everyday financial infrastructure. Crypto businesses can face particular scrutiny because digital assets have been associated with concerns around financial crime, consumer protection and market volatility.

The letter’s argument is that an overly restrictive response from banks could constrain legitimate activity in the UK crypto sector. The issue matters for policymakers seeking to balance safeguards for customers and the financial system with the country’s ambition to support innovation in financial technology.

Crypto regulation and banking access remain significant questions for the industry, as companies need reliable payment and account services to operate. The Financial Times letter adds to debate over whether risk controls are being applied in a way that leaves viable crypto-related businesses without practical access to banking.