As cryptocurrency continues to gain popularity, banks are aligning themselves to become crypto friendly. Some banks have started to adopt and accept cryptocurrency by allowing their customers to trade. As such, if you are a cryptocurrency enthusiast in the UK, then you need to know some of the best UK crypto-friendly banks.
Currently, there are only a few businesses that accept cryptocurrency as a form of payment. As such, cryptocurrency is viewed as an investment product through trading and holding instead of a form of payment.
What is a Crypto Friendly Bank?
A crypto friendly bank is a bank that allows its customers to transact or trade cryptocurrency without restrictions. As such, if you are a customer of a crypto friendly bank, it will allow you to do the following:
- Purchase cryptocurrencies using a debit or credit card
- Make payments to a crypto exchange platform
- Withdraw and deposit money to your crypto wallet or current account
- Buy, sell, or hold cryptocurrencies
In the past, some banks used to freeze money belonging to customers who had any interaction with cryptocurrency. However, banks have started accepting cryptocurrencies.
Is Cryptocurrency Legal in the UK?
Yes. It is legal to trade or own cryptocurrencies in the UK. Cryptocurrencies are not considered a currency, but instead are considered properties in the UK.
Proceeds from the trade of cryptocurrency are taxable in the UK. Besides, all crypto exchanges operating in the UK are required to register with the Financial Conduct Authority (FCA).
Cryptocurrency Friendly Banks UK
The following are some of the crypto friendly UK banks you can consider if you are a crypto enthusiast.
Revolut is a banking app in the UK that allows its customers to trade cryptocurrencies. Revolut has its own cryptocurrency platform in its app. It allows you to trade crypto and manage your banking using one app. Revolut customers are only allowed $100,000 per single cryptocurrency exchange.
Revolut supports crypto debit card purchases, deposits, and withdrawals to exchanges. However, Revolut does not Binance exchange. As such, if you are a crypto enthusiast and you are using the Binance exchange, Revolut is not for you.
Monzo is the other crypto-friendly bank in the UK. Monzo is a virtual bank in the UK. If you have an account with Monzo, you can buy or sell crypto through crypto exchanges. However, they have stated that they will constantly review crypto exchanges and may block some transactions if they consider them risky.
Its downside is that it does not support crypto credit card purchases and has banned Binance. However, you can deposit and withdraw money to exchanges.
Wirexapp is a crypto-friendly banking app in the UK that allows users to buy and sell cryptocurrencies. It issues its customers with a MasterCard they can use to spend on fiat and cryptocurrencies. You can use it to buy, store and manage crypto and fiat currencies.
Besides, Wirexapp allows you to make unrestricted borderless payments using fiat currencies and cryptocurrencies.
Barclays Bank is a traditional bank that supports cryptocurrency in the UK. However, it does not support some exchanges such as Binance. The bank does verification on a payment-by-payment basis depending on the exchange that presents the highest risk.
In 2018, Barclays partnered with Coinbase but canceled the partnership in 2019. However, it does not support crypto credit card purchases and crypto debit card purchases.
Also read Banks for crypto companies.
Nationwide is a building society and not a bank that is crypto friendly in the UK. However, it is very cautious with cryptocurrency transactions. It accepts deposits and withdrawals to exchanges.
Previously, Nationwide had been accepting credit card payments until March 2023 when it banned credit card payments. It also set a £5,000 daily limit for customers using debit cards to buy cryptocurrency. Also, it does not support Binance.
Lloyds Bank is also a crypto friendly bank in the UK. It allows customers to make payments using crypto exchanges using debit cards or a current account. However, debit card payments are restricted. It is because of the volatility of cryptocurrencies that makes it extremely risky.
Lloyds Bank allows deposits and withdrawals from exchanges. However, it does not support Binance and crypto credit card purchases.
Royal Bank of Scotland
Royal Bank of Scotland is also a traditional bank that is crypto friendly bank. It supports deposits and withdrawals from exchanges but does not support the Binance exchange. Customers can use credit cards, debit cards, or direct transfers to trade cryptocurrencies. However, it has put restrictions on credit card payments.
NatWest operates the same way as the Royal Bank of Scotland because they are commonly owned. NatWest is crypto friendly but has some restrictions. For instance, it has a daily limit of £1,000 and a 30-day payment limit of £5,000 to cryptocurrency exchanges.
It supports credit card and debit card purchases. Also, it allows deposits and withdrawals to and from crypto exchanges, but with limits.
Crypto Friendly Banks in the UK
The Financial Conduct Authority scrutinizes the operations of crypto exchanges and puts restrictions on some exchanges. Consequently, crypto friendly banks can only work with exchanges that are licensed by FCA. For instance, crypto friendly banks in the UK have banned their customers from trading on the Binance platform using their current accounts or credit cards.