"After the various crises that happened in the crypto market these few years, banks have become more and more afraid to cooperate."
The banking crisis has been the reason why most cryptocurrency companies in the United Kingdom (UK) are in a difficult situation to get banking services as their applications are often rejected and bank accounts are frozen.
In fact, the banking issue in the UK has worsened to the point that several companies have filed complaints with the government while local banks are opposing Prime Minister Rishi Sunak's objective of establishing the country as a digital asset hub.
According to Edouard Daunizeau, the founder of SavingBlocks said that he had difficulty getting a bank account for his company that offers various portfolios for passive investors.
He added that he had applied to nine lenders to obtain a bank account and two banks accepted the offer, but unfortunately it was too complex and required additional documentation and details on how to monitor customer transactions.
Additionally, Joe David, the founder of crypto-focused accounting and professional services company Nephos Group revealed that money transfer platform Wise Plc froze his company's account for over three months for violating terms and conditions.
The platform not only refuses to support companies involved in crypto but also freezes customer accounts found to be associated with such activities.
While large banks such as HSBC Holdings and NatWest Group have limited the amount of customer money that can be transferred to crypto exchange companies, commented David, adding that banks are the cause of crypto destruction and not the other way around.
