Even as the U.K.'s crypto regulations work their way through the system, most of the country's banks are still blocking their customers' access to even registered crypto exchanges.

The Financial Conduct Authority's list of crypto asset companies, which certifies they meet the country's anti-money laundering and terrorism financing regulations, now numbers 59, including exchanges like Coinbase (COIN), Kraken and Gemini (GEMI).

Still, clients wanting to invest on those platforms are likely to find themselves stymied by their banks. In a report published Monday, lobby group UK Cryptoasset Business Council found that seven out of the 10 top exchanges operating in the country perceive increased hostility from national banks over the past year. The remaining three said things remain unchanged.

A full 80% of the exchanges reported an increase in customers experiencing blocks or limits to bank transfers in 2025 and 70% described the banking environment as more hostile now than 12 months ago. The survey found that 40% of transactions were blocked or delayed.

"The debanking of the UK’s digital asset economy is a major obstacle to its growth," the group wrote in the report. "... almost all of the major UK banks and payments services firms currently impose blanket transaction limits or complete blocks to cryptoasset exchanges. This trend is steadily worsening - with new restrictions being implemented ..."

The FCA, which in the past was very restrictive when it came to crypto companies, has demonstrated more openness, and last week started consulting on new rules to be implemented by October 2027. The road to formal regulation of cryptocurrency in the U.K. became clearer at the end of 2025 with legislation from the Treasury that extended existing financial rules to cover the industry.

“If we are registered with the FCA, it should not be this challenging for U.K. businesses,” one of the exchanges said. “As a result, we have prioritised other markets.”

One crypto exchange said it observed nearly $1.4 billion in declined transactions in 2025 due to bank-side rejections.

The banks are not budging. Among the country's biggest banks, HSBC (HSBA), Barclays (BARC) and NatWest (NWG) all place limits on how much customers can transfer to their crypto exchange accounts. Many others fully block any transfers, including Chase UK, Metro Bank, TSB and Starling Bank, which justifies its stance saying it is for the good of its customers in light of the high risk digital assets represent.

“Starling does not enable customers to buy or sell cryptocurrencies by debit card, bank transfer in GBP, or by bank transfer in other currencies,” a spokesperson told CoinDesk. “We’ve made this decision to help protect our customers."

When asked if it agrees with the crypto exchanges’ perception of a hostile environment, the bank responded saying only, "we keep our policies under constant review and note that regulation of cryptocurrency firms is currently under review by the FCA."

A spokesperson for UK Finance, which represents more than 300 banks and financial services providers, told CoinDesk the organization supports the FCA’s work toward regulating crypto, saying it supports stablecoins and crypto custody under robust rules.

“There is certainly no resistance to crypto from us,” the spokesperson said. Individual banks, however, “have a duty to protect their customers and make risk-based decisions about possible fraud, scams and economic crime threats.”

Several crypto exchanges contacted by CoinDesk declined to comment, with one saying the caution reflects regulatory and legal reasons.

The FCA and the Treasury declined to comment.