UK banks keep crypto limits as FCA regime nears

UK banks have retained widespread restrictions on payments to cryptocurrency exchanges as the Financial Conduct Authority prepares to open its new crypto authorization gateway on Sept. 30. Summary Nine major UK banks currently impose limits or outright blocks on payments to crypto exchanges. FCA authorization applications open September 30, before the new crypto regime begins October 25, 2027. FCA guidance covers regulated stablecoin issuance, trading platforms, custody, dealing, arranging deals and staking services. Government policy expects licensed crypto firms to receive fair banking treatment, but banks retain discretion. Industry research says roughly 40% of UK bank-to-exchange crypto transfers are blocked or delayed today. The Financial Conduct Authority has published new guidance to help crypto businesses identify whether their activities will require authorization when the full UK regulatory framework begins on Oct. 25, 2027. The application period is scheduled to run from Sept. 30, 2026, through Feb. 28, 2027. The rules bring activities including qualifying stablecoin issuance, crypto trading platforms, custody, dealing, arranging transactions and staking inside the UK’s ...