According to new IG research, one in five UK cryptocurrency investors have been blocked or delayed payments when trying to buy digital assets.
The study highlights growing tensions between retail investors and high street lenders, with 40% of crypto users saying they face restrictions when trying to buy tokens.
Banks often justify such interventions on the grounds of fraud prevention. However, the British public seems to be disbelieving in this reasoning. When asked, 42% of adults said they opposed interfering in crypto transactions, while only 33% supported the action.
For many investors, restrictions are more than just inconvenience. More than a third (35%) of respondents said they had converted their banks into another copy of cryptocurrency to buy, while 29% filed formal complaints. Another 22% reduced the size of the deal to avoid being blocked, while 10% said they gave up trying altogether.
The discovery comes from growing warnings that the UK has the potential to attract digital asset businesses in international competitions. Former Prime Minister George Osborne recently argued that the country is dangerously “completely missing the ship” and sees banking restrictions as a key reason for Britain’s loss of competitors.
Michael Healy, managing director of IG UK, said: “We are in a harmful position where millions of people are locked in cryptocurrencies just because of whom they are with. This behavior is anti-consumer at best and anti-competitive at worst – and the public is not supported by the public.
“Only this excessiveness of banks is possible, as there is still no clear UK regulatory framework to manage cryptocurrencies. Responsible companies and investors will be punished before changes occur. If the government takes seriously making the UK a home for cryptocurrency innovation, action needs to be taken.”
According to the Financial Conduct Authority (FCA), 12% of UK adults currently hold crypto assets. IG’s latest survey shows that adoption is rising dramatically, with 25% of respondents claiming to invest.
