UK Banks Block Crypto Payments as FCA License Deadline Looms - KuCoin

Several UK banks have reportedly moved to block or restrict payments to cryptocurrency platforms, a development that coincides with an approaching deadline for firms to secure authorization under the Financial Conduct Authority's cryptoasset regime. The timing suggests banks are tightening their own risk controls as the regulatory picture for digital-asset businesses comes into sharper focus.

For market participants, the practical effect is a narrower set of on-ramps between traditional banking and crypto trading. Payment restrictions can slow deposits, complicate withdrawals, and push activity toward alternative channels, which may affect liquidity and pricing on affected venues. They can also raise compliance costs for platforms that depend on UK banking relationships.

What to watch: whether these blocks are temporary risk measures or a longer-term shift, how the FCA's authorization process unfolds for firms still awaiting approval, and whether other banks follow suit. Clearer rules could eventually reduce uncertainty, but the interim period may keep friction between UK banking and crypto markets elevated.