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4 Best Crypto-Friendly Banks in the UK [2024]
If you are a crypto investor in the UK, the odds are that you may have struggled to find a crypto-friendly bank, or know someone who has faced challenges. This is hardly surprising, given the rise in cryptocurrency adoption, and regulators increasingly putting pressure on UK banks to ensure crypto criminal activities are flagged, and tax obligations met.
This in turn has led to many traditional UK banks to adopt a cautious approach to crypto, and has even led to some of them restricting or even prohibiting transactions related to digital assets. Look no further than well-known banks like Chase banning crypto transactions made by UK customers at the end of last year.
But despite an increase in banking restrictions and prohibition, it's important to note that there are still some UK banks who are allowing investors to buy and sell crypto seamlessly on exchanges and crypto investment platforms like ICONOMI; albeit with certain conditions.
This article will therefore delve into the 4 best crypto-friendly banks in the UK for 2024, and will examine their offerings and pros and cons in order to help you make an informed decision on which banking provider to go with.
Let's dive in!
Best Crypto-Friendly Banks on our list are:
- Revolut
- Monzo
- Nationwide
- Barclays
The Importance of Finding a UK Bank That Is Crypto Friendly
Although the importance of finding a crypto friendly bank is self-explanatory for experienced crypto investors in the UK, this may not be the case for newer investors who have limited experienced
Below are finding a bank that understands and supports cryptocurrency transactions is crucial for several reasons:
1) Seamless fiat and crypto onramp/offramp
The most obvious benefit of finding a friendly UK crypto bank is that it acts as a seamless onramp and offramp between fiat and crypto. This means you can transfer funds to and from crypto exchanges and investment platforms. What's more, if the banking service is good, it will offer fast processing times so you can capitalise on market opportunities promptly.
In some cases, some banking providers may even offer crypto debit cards that allow you to spend your digital assets directly. However, this is something that most traditional banks in the UK will not offer, and is more typical of a neobank.
2) Reduces the likelihood of restrictions and bans
The next benefit of using a crypto-friendly bank is that they reduce the likelihood of avoiding crypto investors experiencing restrictions or bans on crypto-related activities. This is particularly important as many crypto users cannot deal with the stress and anxiety this may cause, and some even rely upon crypto for their livelihoods and savings; and literally cannot afford to experience any mishaps.
3) Security and regulation
Last but not least, finding a UK friendly crypto bank will bring about peace of mind, as most will have payment integrations with cryptocurrency exchanges and investment platforms, ensuring that cashing crypto into fiat is a straight-forward and error-free process (if the process is followed accordingly by the user that is). This brings about a level of security which is very important for UK crypto investors.
Furthermore, most UK crypto banks are now very picky with who they provide services to, and more often than not, crypto exchanges and investment platforms will need to meet certain conditions; or be regulated by the FCA (Financial Conduct Authority).
Which UK Banks Are Crypto-Friendly in 2024?
So what are the most crypto-friendly banks for UK crypto investors?
The truth is that whilst there are indeed some UK banks which allow customers to buy crypto on exchanges and platforms using a current account, it's important to be aware that none are 100% guaranteed to provide a service that doesn't encounter possible bans or restrictions; as highlighted by Crypto Slate. That being said, it does appear that some banks in the UK do provide a consistently more seamless crypto experience than others.
Below is a list of the best crypto friendly banks in the UK according to a sample size of UK crypto investors who recently shared their feedback on social media:
This is not an endorsement, and UK investors should conduct their own due-diligence before deciding to open a bank account.
1) Revolut
Overview:
First on our list is Revolut, which appears to be one of the leading crypto-friendly banks in the UK according to social media feedback.
Revolut does a great job at integrating traditional banking services with cryptocurrency utilities, and allows users to buy, sell, and hold over 90 different cryptocurrencies directly within its app. This includes popular digital currencies like Bitcoin and Ethereum, as well as numerous altcoins.
What's more, in July 2024, Revolut secured a UK banking license, which further reinforces its credibility as one of the leading banking options for UK investors.
Pros:
Seamless integration: Revolut's platform is designed for ease of use, providing a smooth interface for managing both fiat and crypto assets. Users can switch between currencies effortlessly, thanks to real-time exchange rates and instant conversions.
Crypto debit card: Revolut offers a crypto debit card that allows users to spend their cryptocurrencies directly at any point of sale that accepts Visa or Mastercard. This feature converts crypto to fiat in real-time, enabling everyday purchases with digital assets.
Competitive fees and rates: Although Revolut charges fees for crypto transactions, these fees are competitive compared to other platforms. Premium users enjoy lower fees and additional benefits, making it a cost-effective option for frequent traders.
Educational resources: Revolut’s "Crypto Learn" program educates users about cryptocurrency basics and rewards them with small amounts of crypto for completing educational modules. This initiative helps users make informed investment decisions.
Regulatory compliance and security: With its recent UK banking license, Revolut adheres to stringent regulatory standards. It employs advanced security measures, including two-factor authentication (2FA) and biometric verification, to protect user funds and data.
Cons:
Transaction fees: While Revolut offers numerous benefits, its transaction fees for buying and selling cryptocurrencies can be higher than some dedicated crypto exchanges. Users on the standard plan, in particular, may find these fees less competitive.
Limited withdrawal options: One of the significant limitations is that Revolut does not currently support withdrawals of cryptocurrencies to external crypto wallets. This restriction means that users cannot transfer their crypto holdings outside of the Revolut ecosystem, potentially limiting flexibility and control.
Regulatory changes: As a financial institution that deals with cryptocurrencies, Revolut is subject to regulatory changes. Future changes in the regulatory landscape could impact the range of services and the ability to trade certain cryptocurrencies.
2) Monzo
Overview:
Second on our list is Monzo, which is a banking app based in the UK that is known for its user-friendly service, and innovative financial services.
Although Monzo doesn't offer direct crypto trading services, it's still considered crypto-friendly due to it allowing users to buy and sell crypto on FCA-regulated crypto exchanges like Coinbase. This makes Monzo a viable option for UK crypto investors who want to use a reliable bank that facilitates crypto transactions without imposing severe restrictions.
Pros:
Easy to use: Monzo’s app is highly intuitive, providing a seamless user experience. Customers can easily manage their funds, track spending, and set financial goals. The app’s design makes it straightforward to deposit and withdraw funds to crypto exchanges.
Compatible with regulated exchanges: Monzo supports transactions with FCA-regulated crypto exchanges, ensuring compliance with UK regulations. This support includes deposits and withdrawals via bank transfers, Faster Payments, and debit cards, making it convenient for users to move funds to and from exchanges like Coinbase.
Customer security: Monzo prioritises customer security, implementing measures such as transaction monitoring and customer verification. While the bank occasionally blocks transactions for security reasons, these can typically be resolved by contacting customer support.
No specific crypto limits: Unlike some traditional banks, Monzo does not impose specific limits on the amount customers can spend on digital currency purchases. This flexibility is beneficial for active traders and investors who need to move large sums quickly.
Cons:
No direct crypto services: Monzo does not offer direct crypto trading or wallet services. Users must rely on external exchanges to buy, sell, or hold cryptocurrencies. This lack of direct services can be inconvenient for those looking for an all-in-one solution.
Potential for blocked transactions: Although Monzo is generally supportive of crypto transactions, there are instances where transactions may be blocked due to security concerns. This can cause delays and inconvenience, requiring users to contact support to resolve the issue.
Reliance on external platforms: Since Monzo does not provide its own crypto services, users are dependent on third-party platforms for trading and managing their digital assets. This dependency means that any issues with the external platform can affect the user’s ability to manage their crypto investments.
3) Nationwide
Overview:
Perhaps surprising to some, but Nationwide takes third place on our list.
One of the largest building societies in the UK, Nationwide is known for its comprehensive range of financial services, including current accounts, savings accounts, mortgages, and personal loans. Although it does not offer direct cryptocurrency trading services, Nationwide is considered crypto-friendly due to its support for transactions with regulated crypto exchanges.
This makes Nationwide a solid option for UK residents looking to invest in crypto using a bank account.
Pros:
Regulated exchange support: Nationwide supports transactions with FCA-regulated crypto exchanges.This means that users can transfer funds to and from exchanges with confidence, knowing that their transactions adhere to stringent regulatory standards.
Daily transaction limits: Nationwide allows substantial daily transaction limits, making it possible for users to invest significant amounts in cryptocurrencies. For example, Nationwide customers can spend up to £5,000 per day on crypto purchases.
Multiple payment methods: Nationwide offers multiple payment methods for depositing GBP into crypto exchanges, including bank transfers, BACS, Faster Payments, and debit cards. This variety of options makes it convenient for users to fund their crypto investments seamlessly.
Cons:
Restrictions on credit card purchases: Nationwide does not allow cryptocurrency purchases using credit cards, regardless of whether the user is the main cardholder or an additional cardholder. This restriction can be limiting for users who prefer the convenience of credit card transactions.
Potential for blocked transactions: Like many traditional banks, Nationwide may occasionally block transactions to certain crypto exchanges due to security concerns. Although these blocks are intended to protect customers, they can cause delays and require users to contact support for resolution.
No direct crypto services: Nationwide does not offer direct cryptocurrency trading or wallet services. Users must rely on external platforms to buy, sell, or hold their digital assets. This reliance can be inconvenient for those seeking an integrated banking and crypto solution.
4) Barclays
Overview:
Last but least we have Barclays, which is one of the largest and most influential banks in the UK, and which has received positive feedback from quite a few UK crypto investors.
While Barclays does not offer direct cryptocurrency trading or services, it supports transactions with FCA-regulated crypto exchanges. This means that Barclays customers can use their accounts to transfer funds to exchanges like Coinbase in order to buy and sell cryptocurrencies.
Barclays’ commitment to customer needs and regulatory compliance makes it a notable option for UK crypto investors seeking a reliable and well-established bank for their cryptocurrency activities.
Pros:
Regulated exchange support: Barclays allows its customers to deposit and withdraw funds from FCA-regulated cryptocurrency exchanges. This support ensures that transactions adhere to UK regulatory standards, providing a secure and compliant environment for crypto investments.
High daily limits: Barclays offers generous daily transaction limits for online banking and app transfers, which can be beneficial for active traders. Customers can transfer up to £50,000 per day via online banking and up to £10,000 per day via the mobile app once the payee is verified. This flexibility allows for substantial crypto investments without frequent disruptions.
Comprehensive banking services: As a multinational bank, Barclays offers a wide range of financial services that can complement crypto investment activities. These services include retail banking, wealth management, and corporate banking, making it a versatile choice for various financial needs.
Cons:
No direct crypto services: Barclays does not provide direct cryptocurrency trading or wallet services. Customers must use external platforms to manage their crypto assets, which can be less convenient for those seeking an integrated banking and crypto solution.
Potential for transaction blocks: While Barclays generally supports transactions to regulated exchanges, there may be instances where transactions are blocked due to security concerns. This can cause delays and require customers to contact support for resolution.
Limited crypto-specific features: Barclays lacks specific features tailored to crypto investors, such as crypto debit cards or educational resources. This absence means that customers looking for dedicated crypto banking tools may need to consider other options.
How to Withdraw Crypto to Bank Account UK
Withdrawing crypto from a crypto exchange (or investing platform) to a UK bank is a unique process that entirely depends on the crypto service provider. However, most cashing out processes are quite similar and straightforward, and usually only requires a few clicks. For example, for UK crypto investors who are looking to cash out from their ICONOMI account, all they have to do is:
1) Navigate to the "My Portfolio" section.
2) Click on "Withdraw."
3) Choose either Euro or British pound under the Fiat currencies.
4) Select "Bank account."
5) Enter the withdrawal amount and choose your bank account from the dropdown menu.
6) Choose a withdrawal method.
7) Review the transaction details.
8) Enter your 2FA code.
9) Check your email inbox (and spam folder) for a confirmation email and confirm the transaction.
Once confirmed, the withdrawn amount will be transferred to your designated bank account.
Conclusion
While traditional banks have been hesitant and even restrictive towards crypto transactions, the 4 banking solutions presented in this article have proven to be hassle-free for UK investors; according to data collected from social media.
This is great news for UK residents, as it means gaining exposure to this exciting asset class is still possible. However, it's also important to remain wary of regulatory changes, as seen with the Chase example. But as of right now, banks like Revolut, Monzo, Nationwide, and Barclays will allow you to partake in crypto transactions, so long as they are not suspicious.
Best of luck finding the right bank for your needs.
If you enjoyed this article, you may be interested in our other titles:
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