Crypto-Friendly Banks in the UK

Mark Brown

 

Since cryptocurrency is gaining popularity, a wider audience is exploring methods to incorporate them into their daily lives. However, identifying crypto-friendly banks to deal with BTC and other currencies is a big barrier. But, to conduct a trade transaction, crypto-friendly banks that accept digital currencies and provide trade benefits to individuals are worth considering.  

 

If you’re hunting for crypto-friendly banks, take a bird’s eye view of the top crypto-friendly banks that I mention below to perform cryptocurrency trading with ease. First, dig into what are crypto-friendly banks and what you have to look into them. Let’s get started!

What Are Crypto-Friendly Banks?

Crypto-friendly banks allow traders to freely transfer funds from their traditional bank accounts to cryptocurrency trading accounts. A crypto-friendly bank enables its users to use credit/debit cards to freely trade cryptocurrency, and enable you to make wire transactions to bitcoin exchanges and other related companies.

It should allow you to take money out of your bitcoin investments. Let’s look at ones that cater to UK investors.

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Characteristics Of A Crypto-Friendly Bank

The following are some aspects to consider while selecting crypto-friendly banks in the United Kingdom.

1. Security

Because it is so simple to make an irreversible payment, it might be considerably harder to correct things if something bad happens in terms of security. As a result, the level of security provided by the crypto bank should be a top consideration while investing your money. Look for a bank with a long history in the bitcoin sector and no big cyber breaches.

2. Usability

Because crypto technology is revolutionary, it’s understandable that few people are comfortable with it. So, you need a bank with a user-friendly layout or app that allows you to identify and analyze your bitcoin transactions.

3. Fees

When it comes to bitcoin trading, the fees section cannot be neglected. This is due to the fact that customers do not want to pay a hefty price each time they transition between crypto and cash. However, bear in mind that in the banking business, you may not always get precisely what you paid for. There’s nothing wrong with wanting to pay minimal fees, but be sure you’re not compromising other factors like security in order to save money.

4. Supported currencies

Bitcoin is the most renowned, but it is not the only coin to invest in. There is a broad spectrum of cryptocurrencies that have been developing on daily basis. But, b efore opening an account with any of the crypto-friendly banks in the world, research the cryptocurrency that the crypto-friendly banks support so you can diversify your investment. Consider the variety of fiat currencies accepted as well. Some banks accept up to 30 different currencies, allowing you to conduct business in any part of the globe.

Crypto-Friendly Banks in the UK

1. Bankera, United Kingdom

Bankera is a new bank in the market that provides crypto-friendly services to all of its clients. Bankera, which promotes itself as an alternative to bank account gives customers with personal IBANs that allow them to input and receive a payment from crypto exchange SpectroCoin. Clients can also exchange BTC to EUR and deposit money to their debit cards.

Furthermore, Bankera is one of the most Bitcoin-friendly banks, offering crypto-backed business loans that utilise their bitcoin holdings as collateral.

On top of that, it provides standard banking services such as business loans, interbank foreign exchange, and brokerage. It accepts over 40 currencies and does not impose trading fees.

2. Nationwide

Nationwide accepts debit card transactions and allows users to easily withdraw or deposit funds to crypto trading platforms. So, with the exception of a prohibition on credit card transactions, we may call them crypto-friendly.

Since 2018, there has also been a recognized issue with Coinbase SEPA deposits, which you will not encounter with other exchanges.

3. TSB Bank

TSB Bank is known to accept credit and debit card purchases of cryptocurrency. There have been no reported concerns with withdrawing or putting funds to bitcoin exchanges. Keep in mind that big transfers are often flagged by banks, and you may need to divide transfer funds or contact TSB in such circumstances.

4. Barclays

Barclays is a major investment bank in the United Kingdom that is extremely crypto-friendly and deal in cryptocurrencies and blockchain technologies.

Despite the fact that Barclays ended its collaboration with Coinbase in August 2019, Brits may still buy cryptocurrency with their debit and credit cards in most circumstances.

With regards to crypto exchange, I’ve heard of Barclays denying deposits and withdrawals to and from certain exchanges, as well as closing and/or suspending accounts in some situations.

Generally, most consumers claim that they readily transfer crypto-related cash through their Barclays bank. Due to regulatory ambiguity around Binance’s activities in the United Kingdom, Barclays has prohibited consumers from making credit and debit card deposits to Binance.

5. NatWest

RBS owns NatWest, and the bank now permits credit and debit card crypto transactions based on client input. Customers may easily make payments into cryptocurrency exchanges and make withdrawals from these services.

It should be noted that there’s been a few reports involving a refused transaction, as well as a NatWest customer allegedly saying that the bank has a policy change. Despite this, most consumers confirm being able to utilise their accounts for cryptocurrency-related transactions.

6. Revolut

Revolut is a UK crypto-friendly challenger bank that operates through an app. It might not allow you to trade stocks, but it supports the trading of entirely supportive crypto assets.

 Previously, cryptocurrency exchanges like Binance have restricted GBP deposits and withdrawals. Revolut, on the other hand, allows you to utilise various fiat currencies such as US dollars or Euros.

Revolut is an account that I have used since acquiring my first cryptocurrency on Coinbase in 2017. I began using Revolut to eliminate foreign currency conversion costs and to minimise transaction expenses. I have never had any problems purchasing digital assets or cash withdrawals since this time.

Revolut allows you to purchase digital currencies through their three account categories (Standard, Premium, and Metal),  Revolut is a platform for depositing and withdrawing cash from crypto exchanges.

7. Monzo 

Monzo is a comparable challenger internet bank like Revolut that has no branches that is also noted for being crypto-friendly. Although you cannot buy cryptocurrency straight from the app.

However, like with any bank that wants to comply with FCA requirements, they will prohibit transfers to and from any crypto exchanges they deem high-risk. For example, once the FCA issued a consumer warning about Binance, transactions to the crypto trading site were suspended. You can continue to use a variety of alternative cryptocurrency exchanges as part of your Monzo personal banking services.

Why Traditional Banks Do Not Allow The Trading Of Bitcoin And Cryptocurrencies?

Banks, in general, are opposed to digital currencies and decentralisation. This is because of many reasons of which the two most important reasons are as follows:

  • Volatility: Because of the unpredictable nature of the cryptocurrency industry, banks do not allow buying and selling of cryptos. Banks are in business to make a profit. They do not want the worth of all their assets or the value of their clients to vanish overnight because of a minor movement in the bitcoin market.
  • Regulations: There are currently rigorous laws in place for dealing with electronic money, and these restrictions will get increasingly stricter in the near future as the world heats up to cryptocurrencies. Like many countries, the United Kingdom lacks clear regulation on how banks should engage with cryptocurrencies. Even for banks engaged in doing anything in that area, the lack of a regulatory environment makes it tough.

Conclusion

Several large banks still see crypto trades as incredibly risky, if not illegal. However,  there are a number of innovative banks that wish to embrace new developments and assist their customers with cryptocurrency transactions.

We believe that traditional banks will ultimately accept crypto-related services, particularly as regulatory certainty grows. Until then, you may use the crypto-friendly banks that I recommended to make deposits and lock earnings without fear of an account suspension or closure.

 

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