NEWS ANALYSIS
How the UK is shooting itself in the foot over crypto By George Iddenden
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n recent years, the UK has been keen on positioning itself as a global crypto asset hub, however it’s currently facing critical obstacles which are hindering its effort. While the industry has worked hard to make early gains in the crypto space, it’s encountered a dual challenge linked to the legacy banking sector which is preventing progress being made according to insiders. One of the major issues is currently revolving around retail customers’ ability to access crypto products, with large banks, including Chase Bank, blocking
Winter 2023
transactions with crypto exchanges. Perhaps the primary reason for this is the new app reporting requirements introduced by the Payment Systems Regulator (PSR), making banks increasingly risk-averse. While risk management is crucial, the new stringent measures have implications for crypto businesses, creating a scenario where potential customers are denied access to essential financial services. The second challenge being put in the way of progress in the sector is related to the difficulties companies are
now facing when trying to open and maintain banking accounts in the UK. Many businesses involved in blockchain, crypto, web3, fintech, and payments are forced to rely on secondtier banks or operate offshore due to their inability to secure accounts with major banks. This is inadvertently pouring water on the crypto flame, hindering companies from scaling and expanding their operations within the UK. NorthPoint Strategy, a leading emerging tech lobbying firm, managing director Simon Jennings believes the UK
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