UK Banks Tighten Crypto Restrictions Despite Progress in Regulatory Framework

Major UK financial institutions are escalating their cautious approach towards cryptocurrency transactions, even as the country advances its official regulatory process for digital assets. Reports indicate that several high-street banks are increasing scrutiny, imposing lower limits, or outright blocking payments to crypto exchanges. This move is attributed to ongoing concerns over fraud, volatility, and regulatory uncertainty. Industry advocates argue that such restrictive measures by banks contradict the government's parallel efforts to establish a clear regulatory environment to foster innovation. The situation highlights a significant tension between traditional finance's risk aversion and the evolving digital asset ecosystem in the UK, potentially impacting investor access and market growth during a pivotal development phase.