Is a US-style wave of crypto “de-banking” hitting the UK? – Part 2
Jan 28 2026
White Collar Crime
Recent reports indicate that UK banks are blocking or delaying close to 40% of payments to cryptocurrency exchanges, raising renewed concerns that the UK is experiencing a form of crypto-related “de-banking” similar to that seen in the United States.
Industry data is suggesting that widespread payment restrictions are increasing customer friction, disrupting legitimate crypto businesses and potentially undermining the UK’s ambition to position itself as a global hub for financial innovation. Crypto exchanges and industry bodies warn that opaque banking practices, transaction caps and unexplained payment rejections are creating uncertainty for individuals and businesses operating fully within the law.
This development follows years of concern about access to banking services for crypto-related firms and individuals, despite FCA registration and compliance efforts. Against this backdrop, questions remain about whether current banking practices are proportionate, risk-based and compatible with existing UK regulatory obligations.
Background
Back in July 2025, we sign-posted several articles by respected publications citing real concerns about British businesses fearing a US-style wave of crypto “debanking”.
In May 2025, for example, in an article titled “British businesses fear US-style wave of crypto “debanking”” the Observer described a senior employee of a publicly listed, UK registered crypto company struggling to secure a mortgage because their salary was paid by a crypto business. The article also referenced a British high street bank baring all outbound payments to crypto exchanges and noted that half of UK businesses (out of 80 that responded to a survey conducted by startup and cryptoasset groups) reported being rejected for a business bank account or had an account closed.
An earlier January 2025 Forbes article titled “No Country For Young Fintechs: the U.K.’s Debanking Of Crypto Blockchain And Web 3”, noted how a survey of UK fintech and crypto firms found that 50% of firms have been blocked from opening a bank account.
Indeed, we have more recently explored the potential new regulation in an article titled UK crypto regulation – a new regime for cryptoasset regulation.
What’s the current situation in the UK?
Unfortunately, those who choose to hold legitimately obtained cryptoassets are still experiencing difficulties with banks. It has recently been reported that UK banks are blocking or delaying close to 40% of payments to cryptocurrency exchanges, sharply increasing customer friction and slowing market growth.
The UK Cryptoasset Business Council has warned that blanket debanking practices could breach existing regulations, including those on payment services, consumer protection and competition.
The Council has also urged the UK’s Financial Conduct Authority and the Government to enforce a risk-based approach, expand data sharing and remove unnecessary barriers as the UK finalises its long-term crypto framework.
To conclude – it is still hoped that the combination of new regulations to regulate cryptoassets and stricter rules to try and prevent de-banking should alleviate matters moving forward.
What can I do to try and challenge a wrongful decision to close my personal and/or bank account(s)
In the meantime, we are increasingly being approached by individuals who have been “de-banked” in circumstances when individuals feel that they have always acted in full compliance with the relevant bank account’s Terms and Conditions and all other legal and applicable rules and regulations.
We have previously written about how other issues individuals may face, including account closures, are not limited to political figures in the UK, and 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 navigate 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?”
“How to challenge crypto-related bank account closures”
What can I do to try and challenge a wrongfully-imposed CIFAS marker
We are also being increasingly approached by individuals who feel that a financial institution has wrongly imposed a CIFAS marker in their name.
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 on which to challenge the bank’s decision to implement any CIFAS markers.
A strong challenge will often involve demonstrating through evidence that you have not breached the bank’s Terms and Conditions or any rules and regulations, and that all transactions were at all times carried out in full compliance with all applicable laws and regulations.
In a previous blog we examined what a CIFAS marker is and how to try and get it removed and also what you can do if a CIFAS marker has been wrongfully imposed.
We have also recently published a blog titled Challenging a crypto-related CIFAS Marker: what you can do.
NAVIGATING FINANCIAL INSTITUTION RELATED CHALLENGES
Adverse Information on Compliance Databases
We are 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 accounts being closed and difficulties in opening a bank account.
We have also written a series of blogs with a basic overview of the main functions of compliance databases like World-Check and how you can correct information about yourself on such databases.
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 to assess 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 e-mail, or, alternatively, follow us on X, Facebook, Instagram, or LinkedIn to stay-up-to-date.
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 2026
View all news & Insights
