Blockchain & Crypto

CryptoUK Calls On Government to Intervene Over Bank Restrictions

The CryptoUK Trade Association has sent a letter to the UK government expressing deep concern over the recent actions of banks to restrict purchases of cryptocurrencies.

CryptoUK Calls On Government to Intervene Over Bank Restrictions

Source: Pixabay.com

The Trade Association has proposed to the Government to create a list of exchanges that will not be subject to restrictive measures imposed by financial institutions.

Over the past few months, NatWest, HSBC, Nationwide Building Society, and Santander have made decisions on restrictions on the purchase of cryptocurrencies. Financial institutions stated that these measures are related to the need to respond to threats of fraudulent activity using this type of currency. The banks also noted that restrictions are necessary due to the lack of mechanisms for regulating processes in the crypto industry.

In a letter to Treasury Economy Minister Andrew Griffith, CryptoUK stated that the restrictions and other prohibitions invalidate the practical effectiveness of the government’s efforts to become the center of crypto assets. It is also noted in this letter that the methodology of restrictive measures casts doubt on the possibility of achieving the goals of the mission to maximize the potential of Web3 to stimulate growth and innovation in the UK.

The Trade Association states that financial institutions have chosen the easiest way after deciding in favor of establishing general restrictions instead of applying an approach of analyzing potential risks on a case-by-case basis.

The letter contains a proposal to ensure the interaction of bank managers and representatives of the crypto industry to find a viable solution. The Trade Association sees a way out of this situation in creating a list of platforms that interact with the regulatory perimeter of the UK (through AML registration or other EMI/MiFID licenses) and for this reason, should not face transaction restrictions.

In a separate letter to the FCA and the payment systems regulator, CryptoUK declares understanding on the part of the association if the authorities refuse to intervene in the situation due to the right of banks to make independent commercial decisions.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.