The rise of digital assets has reshaped how individuals interact with financial institutions. In the UK, a growing number of banks are adapting to this shift by offering crypto-friendly services—either through direct integration or by enabling seamless transfers to regulated cryptocurrency exchanges. This guide explores the most supportive UK banks for crypto investors, outlines key considerations, and helps you make informed decisions in 2025.
What Is a Crypto-Friendly Bank?
A crypto-friendly bank refers to a financial institution that supports customer engagement with digital assets such as Bitcoin and Ethereum. This support typically falls into two categories:
- Integrated Crypto Banks: These institutions allow users to buy, sell, and hold cryptocurrencies directly within their banking apps, blending traditional finance with digital asset management.
- Transfer-Friendly Banks: While they don’t offer built-in crypto trading, these banks permit smooth bank transfers to and from FCA-registered crypto exchanges, avoiding payment blocks or delays.
Both models aim to provide responsible access to digital assets while maintaining compliance with financial regulations and risk management standards.
👉 Discover how to securely transfer funds from your UK bank to top crypto platforms.
Top Crypto-Friendly Banks in the UK
1. Revolut
Revolut, founded in 2015, has evolved from a fintech startup into a globally recognized financial services provider with over 50 million users. In 2024, it secured a full UK banking license under Revolut NewCo Ltd (FCA FRN #981170), marking a major milestone in its regulatory journey.
Advantages
- Fully licensed by the Financial Conduct Authority (FCA) for both banking and crypto trading (FRN #933846).
- Offers access to over 210 cryptocurrencies, including Bitcoin, Ethereum, and Solana.
- Multi-currency accounts support GBP, EUR, and digital assets in one interface.
Disadvantages
- Charges a 1.49% fee for standard users (reduced for premium tiers).
- No crypto withdrawals to external wallets for most coins—limiting true ownership.
- Lacks advanced trading tools like futures, margin trading, or deep market analytics.
While Revolut simplifies crypto investing for beginners, experienced traders may find its feature set limited.
2. Monzo Bank
Monzo is a digital-first challenger bank known for transparency and user-centric design. It doesn’t offer native crypto trading but allows transfers to FCA-registered exchanges, making it transfer-friendly.
Advantages
- Clear public policy on crypto payments, reducing uncertainty.
- Real-time transaction alerts and card control features enhance security.
- No restrictions on transfer amounts to compliant platforms.
Disadvantages
- No in-app crypto wallet or investment tracking.
- Some transactions may be flagged or delayed if deemed high-risk.
- Relies entirely on third-party platforms for crypto access.
Monzo is ideal for users who value transparency and security but are comfortable managing crypto externally.
3. Lloyds Bank
As one of the UK’s oldest banks (founded in 1765), Lloyds maintains a conservative stance but permits transfers to regulated crypto exchanges upon verification.
Advantages
- Allows unrestricted transfers to FCA-approved platforms.
- Strong fraud detection systems protect users during transactions.
- Trusted reputation offers peace of mind for traditional banking needs.
Disadvantages
- Blocks payments to high-risk or unregistered exchanges.
- No crypto education or portfolio tools within the app.
- Inconsistent approval processes may require phone verification.
Lloyds balances safety with limited flexibility, suitable for cautious investors.
4. Barclays Bank
Barclays, established in 1690, supports transfers to FCA-regulated exchanges but applies strict anti-fraud checks.
Advantages
- Enables deposits and withdrawals to compliant crypto platforms.
- Robust security protocols reduce risk of unauthorized transactions.
- No transaction limits for verified payments.
Disadvantages
- Blocks all transactions involving Binance.
- No internal crypto services or educational resources.
- Lack of a published crypto policy creates ambiguity.
Barclays prioritizes security over convenience, which may frustrate active traders.
5. Co-operative Bank
Known for its ethical banking principles, Co-operative Bank allows transfers to regulated exchanges but restricts offshore platforms.
Advantages
- No limits on incoming or outgoing crypto-related transfers.
- Publishes educational content on crypto scams and risks.
- Transparent communication about allowed platforms.
Disadvantages
- Does not support direct crypto trading or wallets.
- Frequent blocks on international exchanges limit access.
- No portfolio tracking or market insights in-app.
Ideal for risk-aware users who value ethical banking and education.
6. Virgin Money
Virgin Money permits transfers to FCA-regulated exchanges but takes a cautious approach toward digital assets.
Advantages
- Supports high-value transactions for serious investors.
- Provides customer support for crypto-related queries.
- Allows transfers within regulatory boundaries.
Disadvantages
- No native crypto features or investment tools.
- Minimal educational resources on digital assets.
- Occasional blocks on certain platforms disrupt trading plans.
Best suited for those using external exchanges while relying on Virgin for core banking.
7. HSBC
HSBC, a global banking giant, allows limited transfers to FCA-approved exchanges but imposes strict caps.
Advantages
- Clear public guidelines on crypto transaction rules.
- Global reach benefits international investors.
- Permits transfers under strict compliance checks.
Disadvantages
- £2,500 per transaction and £10,000 monthly limit on crypto transfers.
- No integrated crypto services or wallet support.
- Frequent payment issues for regular traders.
HSBC’s conservative limits make it less ideal for active crypto users.
8. Nationwide Bank
Nationwide enables transfers to regulated exchanges but enforces daily and platform-specific restrictions.
Advantages
- Supports payments to FCA-registered platforms.
- Offers accessible customer support for payment issues.
- Transparent about its crypto transfer policies.
Disadvantages
- £5,000 daily limit on Faster Payments.
- Binance transactions are fully blocked.
- No credit card purchases of crypto allowed.
A moderate option with clear boundaries and strong consumer protection.
9. NatWest Bank
NatWest allows limited transfers to approved exchanges but warns customers about crypto risks.
Advantages
- Transparent policy on allowed transactions.
- Supports payments to select FCA-regulated platforms.
- Strong anti-fraud systems protect user funds.
Disadvantages
- £1,000 daily and £5,000 monthly limit on crypto payments.
- Credit card purchases banned since 2018.
- No internal crypto tools or storage options.
Best for low-frequency investors prioritizing security.
10. Royal Bank of Scotland (RBS)
RBS, part of the NatWest Group, mirrors its parent’s cautious approach with strict transfer limits.
Advantages
- Allows access to regulated crypto exchanges.
- Clear information on transaction limits and restrictions.
- Dedicated support for payment-related inquiries.
Disadvantages
- Same £1,000 daily / £5,000 monthly cap as NatWest.
- Full ban on credit card crypto purchases.
- No integrated digital asset services.
RBS offers structured access but lacks flexibility for larger investments.
Which UK Banks Are Not Crypto-Friendly?
Some UK banks take a hardline stance against cryptocurrency:
- Starling Bank: Blocks all crypto transactions due to fraud concerns.
- Metro Bank: Prohibits all cryptocurrency payments outright.
- TSB: Frequently declines payments to exchanges for security reasons.
- Santander: Blocks Binance and bans credit card crypto spending.
- First Direct: Follows HSBC’s restrictive policies on digital assets.
These institutions prioritize fraud prevention and regulatory compliance over crypto accessibility.
Why Do UK Banks Restrict Crypto Transactions?
Banks impose restrictions due to:
- High risk of fraud and scams linked to irreversible crypto payments.
- Compliance with anti-money laundering (AML) regulations enforced by the FCA.
- Lack of consumer protection—crypto assets are not covered by FSCS.
- Volatility and speculative nature of digital currencies.
These factors drive conservative policies across traditional banking sectors.
👉 Learn how top UK banks are adapting to the evolving crypto landscape.
What Is the Safest UK Cryptocurrency Exchange?
Kraken stands out as the safest exchange for UK users. Operated by Payward Ltd (FCA FRN #928768), it is fully registered under UK crypto regulations.
Key security features include:
- Regular proof-of-reserves audits
- Military-grade encryption
- 24/7 monitoring and cold storage
- Advanced trading tools via Kraken Pro
Kraken supports GBP deposits via bank transfer, FPS, BACS, SWIFT, and PayPal—making it highly accessible.
👉 Start trading securely on a trusted global platform today.
Frequently Asked Questions (FAQ)
Why do some crypto-friendly banks still block certain exchanges?
Banks assess risk based on regulation, location, and compliance history. Exchanges like Binance are often blocked because they lack full FCA registration or have been flagged for non-compliance.
Are there tax implications when using a crypto-friendly bank in the UK?
Yes. While the bank itself doesn’t impose taxes, any profits from selling crypto are subject to Capital Gains Tax. Always report transactions to HMRC regardless of your bank’s policies.
Do UK banks protect cryptocurrency deposits?
No. Cryptocurrencies are not protected by the Financial Services Compensation Scheme (FSCS). Only fiat deposits (e.g., GBP) up to £85,000 are insured.
Which UK bank allows the highest pound deposit limits for crypto?
Revolut and Monzo offer the highest flexibility with no set caps on transfers to FCA-approved exchanges, provided transactions pass fraud checks.
Can I use a credit card to buy crypto through UK banks?
Most major banks—including NatWest, RBS, and HSBC—have banned credit card purchases of cryptocurrency due to debt and volatility risks.
Is it safe to link my bank account to a crypto exchange?
Yes—if the exchange is FCA-registered and uses strong security measures like two-factor authentication (2FA) and encryption. Always verify the platform’s credentials before linking accounts.
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