CryptoUK Urges Regulators to Provide a White List to Solve De-banking
- CryptoUK claims crypto firms are being banned from accessing banking services.
- Nationwide Building Society and HSBC Holdings have banned U.K. retail customers from purchasing crypto with credit cards.
- The collapse of crypto-friendly Silvergate Bank, Silicon Valley Bank, and Signature Bank was a huge blow to crypto companies.
Amidst concerns about the survival of the crypto industry in Europe and the United States, UK-based lobby group CryptoUK has urged regulators to publish a “white list” of registered firms so as to avoid cutting off the industry from mainstream finance.
The self-regulatory group said the list would help address banks banning or limiting transactions with crypto firms. CryptoUK stated in letters published on Tuesday, March 21, that several financial institutions had started imposing blanket bans on doing business with cryptocurrency firms.
The letters were addressed to U.K. Economic Secretary Andrew Griffith, members of the Financial Conduct Authority, and members of the Payment Systems Regulator. The group suggested developing a “white list” of authorized cryptocurrency businesses so they could freely deal with banks without restrictions or the danger of sanctions.
The group noted that “many of the major UK banks have now put in place bans or restrictions, and we are concerned that other banks and Payment Services Providers (PSPs) may also soon follow suit,” adding that “we believe that government action is now warranted.”
Su Carpenter, director of operations at CryptoUK, said,
We are calling upon the government to find a path forward. Blanket bans and restrictions on transfers from U.K. banks to crypto asset platforms… will have the effect of fundamentally undermining the government’s ambition to become a crypto asset hub.
Reports state that banks such as Nationwide Building Society and HSBC Holdings have banned U.K. retail customers from using credit cards to buy cryptocurrency. Crypto service providers in the UK are required to register with the Financial Conduct Authority and adhere to anti-money laundering laws.
The crypto market received fresh shocks following the collapse of the crypto-friendly Silvergate Bank, Silicon Valley Bank, and Signature Bank. Advocacy groups and lawmakers in the United States have expressed fears over the impact of the collapse of the banks.
Many crypto experts believe crypto firms may find it more difficult to adhere to rules and provide their services in a way that meets the standards of the US Securities and Exchange Commission as a result of losing their banking partners. Others claim the US government is attacking the crypto industry via mainstream finance.
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