Many banks in the UK attempt to shut down cryptocurrency-related firms and people who want to invest in cryptocurrencies, but their policies are designed to correct the situation.
The Financial Conduct Authority (FCA) of the United Kingdom (UK) notified the leaders of the biggest high street banks in the nation in 2018 to consider the critical decision of how to handle crypto firms in the nation. This appears to have resulted in numerous high marks and restrictions on cryptocurrency-related banking, which has an effect on both investors and cryptocurrency businesses looking to operate in the United Kingdom.
Because the situation is imbalanced right now, the banks must cooperate or reasonably be more worried with scams. Cryptocurrency businesses need a good payment method for their staff and suppliers as well as access to other payment rails for a variety of other reasons. Cryptocurrency investors want a good transaction to ensure that their money moves as smoothly as they want it to.
Avoiding cryptocurrencies services on purpose will have a negative impact on market competition for various banking services, such as payment methods. Because they believe it will have an impact on the market, banks are postponing the derisking of cryptocurrencies and the facilitation of cryptocurrency to bank transfers. And if that occurs, the regulator will step in and preserve market competition.
Customers are contacted to confirm transactions they have made recognizing the risks associated. Additionally, banks are either entirely barring cryptocurrency payments or starting their fraud prevention procedures. This demonstrates that the risk associated with cryptocurrency-related transactions is not justifiable and that regular individuals are unable to spend their money as they like.
Although investors’ freedoms are restricted and crypto firms face difficulties opening bank accounts, practically every high street bank has a considerable interest in the technology. They are examining if cryptocurrency will be successful from the perspective of institutional investment, but the willingness and understanding do not reach the retail and corporate transactional bankers across the building.
By: J.J Sharia
