CIFAS markers related to cryptocurrency use are becoming increasingly common, often imposed without clear justification. These markers can have serious legal and financial consequences, affecting access to essential banking services. In this blog, we explain how CIFAS markers can arise from crypto transactions, what you can do to challenge one, and how Gherson’s regulatory team can help you take effective action.
We are increasingly approached by individuals who have been adversely affected by a CIFAS marker in circumstances involving their bank account(s) and crypto transactions, despite being confident that they have not breached any of the bank’s Terms and Conditions or applicable laws and regulations.
In such cases, the bank will likely have also closed the individual’s bank account(s).
Individuals in this position often seek advice on how to remove a wrongly applied CIFAS marker and how to potentially challenge the bank’s decision to close their account(s).
In some scenarios, a CIFAS marker may have been added in error, and being in this unfair situation can have a profoundly detrimental effect due to the wide-ranging, complex and adverse consequences for the individual affected.
What are the potential issues with crypto transactions?
It should generally be fine to use your bank account in relation to crypto transaction, provided (and this is non-exhaustive) that:
- You are always in full compliance with your bank’s Terms and Conditions.
- You only deal with UK-regulated entities and crypto exchanges.
- You are in full compliance with all applicable laws and regulations; and
- The source of funds is always clean.
However, in some cases, banks may understandably be cautious of transactions involving crypto. This can sometimes lead to the wrongful closure of bank accounts, or, in the worst-case scenario, the incorrect imposition of a CIFAS marker.
Such outcomes can have devastating consequences.
What can I do to challenge a wrongly imposed CIFAS marker?
If you have always acted in full compliance with the relevant bank account’s Terms and Conditions and all other applicable legal rules and regulations, then you should have a good basis to challenge the bank’s decision to impose CIFAS markers.
A successful challenge typically involves providing clear evidence that you did not breach any terms or regulations, and that all transactions were conducted in full compliance with the law.
In a previous blog, we examined what a CIFAS marker is and how to try and get it removed, as well as what you can do if a CIFAS marker has been wrongly imposed in your name.
What can I do to try and challenge a wrong decision to close my bank account?
We are increasingly being approached by individuals who have been “de-banked” despite believing that they have acted in full compliance with their bank’s Terms and Conditions, as well as all applicable laws and regulations.
We have previously written about how other issues such as account closures are not limited to political figures in the UK, and may affect many thousands of lawful individual and business customers every year. These cases have exposed the difficult balance many financial institutions and their individual and business customers must strike to gain and maintain access to basic banking services.
To assist those whose accounts have been closed, Gherson’s financial crime, investigations and regulatory team have previously written blogs titled:
- Why has my bank account been closed
- Why has my business bank account been closed?
- 140,000 SMEs “de-banked” last year – why could I have been de-banked?
- What are the proposed new laws aimed at preventing de-banking?
- Why the proposed new laws to try and prevent de-banking to not go far enough
- Am I entitled to a basic bank account in the UK?
NAVIGATING FINANCIAL INSTITUTION RELATED CHALLENGES
Adverse Information on Compliance Databases
We also being increasingly approached by individuals who feel that incorrect and/or inaccurate data about them stored in compliance databases is having an adverse effect on their relationship with financial institutions, and are facing subsequent issues, such as bank account closures and difficulties in opening a bank account.
We have also written a serious of blogs on a basic overview of the main functions of compliance databases like World-Check and how you can correct information about yourself on such databases.
Updated: 6 May 2025
HOW GHERSON CAN ASSIST
Gherson’s regulatory, white-collar and investigations team are highly experienced in providing assistance on what you can do if your bank freezes or closes your account. This includes assisting you in submitting a request under data protection legislation, otherwise known as a Data Subject Access Request, to ascertain what information banks and other financial institutions may be holding on you and their decision-making, and then analysing the response and assisting with any appropriate challenge.
If you have any questions arising from this blog, please do not hesitate to contact us for advice; send us an email at enquiries@gherson.co.uk or, alternatively, follow us on Twitter, Facebook, Instagram, or LinkedIn to stay up to date with the latest developments.
The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please do not hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.
©Gherson 2025