UK Banks Block Crypto Payments as FCA License Deadline Looms - KuCoin

Several UK banks have reportedly restricted or blocked customer payments to cryptocurrency platforms, according to KuCoin. The development arrives as firms serving UK customers approach a key deadline under the Financial Conduct Authority's financial promotions regime, which requires crypto businesses to be authorised, or to have their marketing approved by an authorised firm, to continue operating legally in the market.

The timing matters because payment access is a practical lifeline for exchanges. When banks limit transfers to crypto venues, customers can face friction moving funds, and platforms may see reduced on-ramp activity. For banks, the restrictions reflect a broader effort to manage fraud, scam, and compliance risk as regulators scrutinise how crypto firms advertise and onboard UK users.

What to watch: whether these blocks are temporary or become standard practice, how the FCA's authorisation process unfolds for affected firms, and whether alternative payment routes emerge. Clearer regulatory status could eventually reduce friction, but near-term uncertainty may weigh on UK crypto access and volumes.