Stand With Crypto UK is calling on its 286,000 members to challenge UK banks restricting transfers to cryptocurrency exchanges, arguing that blanket transaction limits on regulated platforms restrict access to digital assets.
The modern campaign refers to a report by the British Cryptoassets Business Council, which shows that 40% of cryptocurrency transactions are blocked or restricted by British banks. The group argues that many restrictions apply to transfers involving exchanges registered with the national Financial Supervision Authority and do not take into account customers’ individual risk profiles.
According to the report, one exchange saw almost GBP 1 billion worth of trades rejected during the year due to bank rejections, while 80% of platforms surveyed saw an boost in the number of blocked or restricted transfers.
Stand With Crypto says members can submit complaints through a tool on its website that generates letters challenging transfer restrictions, and responses from banks are intended to facilitate inform the next steps of the campaign.
“Your money. Your choice.” is the slogan of the Stand With Crypto UK promotional campaign.
Source: Stand with Crypto UK on X.com
Mark Fairless, chief executive of British clearing bank ClearBank, told Cointelegraph that banks should take a risk-based approach to cryptocurrency payments rather than impose broad sector-wide restrictions.
“Interventions should be targeted and proportionate as broad blocks could threaten competition and the ability of regulated firms to operate effectively in the UK,” Fairless said.
Related: The EU proposes a ban on 11 cryptocurrency platforms in connection with Russia’s sanctions
Stablecoin rules remain at the center of attention for British policymakers
The campaign follows ongoing efforts by regulators to develop a UK-wide framework for stablecoins.
In early May, a House of Lords committee examined proposed stablecoin regulation, with lawmakers grilling industry executives about the risks of running banks, anti-money laundering controls and the potential impact of stablecoins on time-honored banking.
Later that month, the Bank of England said it was reconsidering proposed restrictions on stablecoin holdings and reserve requirements as it reviewed its framework for sterling-denominated stablecoins.
The review comes as regulators seek to support the development of the domestic stablecoin market while mitigating potential risks to bank funding and financial stability, with non-dollar stablecoins currently making up only a diminutive portion of the global market.
Total market capitalization of the stablecoin. Source: DefiLlama
In June, a House of Lords committee found that some proposed stablecoin requirements, including reserve and custody rules, could limit the viability of pound-denominated tokens. The Commission urged regulators to avoid measures that could hamper the sector’s growth while finalizing the national stablecoin framework.
In addition to stablecoins, regulators have also developed broader digital asset initiatives. In May, the central bank proposed extending the operating hours of the national settlement infrastructure to serve tokenized markets, while the Polish Financial Supervision Authority proposed on June 8 to allow certain retail-focused investment funds to allocate up to 10% of their portfolios to exchange-traded products.
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