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UK Tells Banks to Stop Blocking FCA-Licensed Crypto Firms as Final Rules Near

The FCA’s final consultation is underway with feedback due March 12, setting expectations before a September 2026 authorisation window.

Overview

  • HM Treasury said banks should treat FCA-authorised crypto businesses fairly and not impose blanket account or transaction restrictions.
  • An industry survey reported increased hostility from UK banks in 2025, with 80% of exchanges seeing more customer transfer blocks and 40% of transactions blocked or delayed.
  • The FCA’s consultation outlines ten proposals that apply traditional financial standards to crypto, including consumer duty, conduct rules, safeguarding and enhanced reporting.
  • The draft rules include tighter limits on using borrowed money, including credit cards, to purchase cryptoassets in a bid to reduce consumer harm.
  • Regulatory momentum continues as some firms, such as Ripple, secure FCA crypto registration and EMI authorisation, even as industry voices warn prolonged timelines could send business to other jurisdictions.