UK banks are still widely restricting payments to cryptocurrency exchanges even as the Financial Conduct Authority prepares to open applications for its new crypto authorization regime on Sept. 30. The upcoming framework will bring several crypto activities into the UK financial-services system, but it does not oblige retail banks to process exchange-related payments.
That means the FCA’s new gateway and bank payment access will remain separate issues. Crypto firms may seek authorization under the new rules, yet consumers and businesses could still face caps, delays or outright blocks when trying to send money from bank accounts to exchanges.
New FCA regime has a defined scope
The FCA’s application window is scheduled to run from Sept. 30, 2026, through Feb. 28, 2027. The regime covers activities including qualifying stablecoin issuance, crypto trading platforms, custody, dealing, arranging transactions and staking.
Those rules are designed to place parts of the crypto sector inside the UK’s financial-services regulatory framework. However, the authorization process applies to crypto businesses rather than to the payment policies used by high-street and digital banks.
Bank restrictions remain uneven but extensive
Approaches vary significantly across British lenders. Some institutions impose transaction and monthly limits, while others stop certain crypto payments entirely depending on the account, payment method or destination exchange.
Barclays limits personal and business transfers to crypto exchanges to £2,500 per transaction and £10,000 per calendar month, and also applies a £10,000 monthly debit-card cap. Barclaycard has not permitted cryptocurrency transactions since June 2025. HSBC UK uses the same £2,500 single-payment limit and a £10,000 rolling 30-day ceiling for bank and debit-card payments, while credit-card crypto purchases are still banned.
NatWest caps identified exchange payments at £1,000 a day and £5,000 over 30 days. Santander sets a £1,000 per-transaction limit and a £3,000 cap across 30 days for identifiable crypto payments, alongside separate blocks for payments to Binance. Nationwide allows crypto purchases but applies a £1,000 daily limit to current-account transfers and debit-card payments on most accounts. Monzo uses a £5,000 rolling 30-day allowance.
Some banks still block crypto payments altogether
At the stricter end of the market, some lenders continue to reject crypto-related transfers that they identify. Chase UK blocks all payments recognized as crypto transactions, according to the source article.
Metro Bank has not processed outbound payments to known crypto exchanges since November 2024. Starling and TSB are also among the banks applying restrictions, although the exact policy can differ by product, payment rail and account type.
Authorization does not guarantee banking access
The source article says FCA authorization will not automatically lead banks to lift existing controls. A licensed crypto company may meet the regulator’s standards for the activities it carries out, but that status does not ensure access to retail banking channels.
Bank decisions are described as remaining largely commercial, even though authorized firms should be treated fairly. Industry data cited in the report suggests around 40% of UK bank-to-exchange transfers are blocked or delayed, underscoring continued friction between banking services and crypto platforms.
What changes next
The next confirmed step is the opening of the FCA authorization gateway on Sept. 30, followed by the application period running until Feb. 28, 2027. That process will determine which crypto businesses seek entry into the new regime for activities such as custody, trading, stablecoin issuance and staking.
For now, the rollout does not alter banks’ discretion over exchange payments. Unless individual lenders revise their own policies, UK customers may continue to encounter limits or refusals even after the new regulatory framework starts accepting applications.
Source: crypto.news