These 5 are the most friendly banks for crypto users in the UK
These 5 are the most friendly banks for cryptocurrency users in the UK
Cryptocurrency is taking pride in being the best investment model since 2009. This particular currency has faced huge market lashes but continues to hold interest and a safe market position. Also, there has been an increase in the total number of Trading Bitcoin and investors. An important factor that drives people towards this investment model is its ability to withstand market pressure and other economic conditions. While pandemic and global lockdown resulted in an economic slowdown, this impact was not felt in crypto investments. Upon considering the growing interest in crypto investments many countries are also looking at options to regulate this investment model. Such regulations will also allow controlling the use of cryptocurrencies for illegal activities. It will also provide insight into the number of crypto investments and enable security in investments.
Relation between banks and cryptos
In the past, we have come across situations wherein bank accounts were frozen due to crypto transactions. Investors who purchased cryptocurrencies faced termination of their bank accounts and frozen funds in a jiffy. However, the same is not the case these days. Considering the growing interest and rapidly increasing market volume banks have also become crypto-friendly.
Before understanding in detail banks, let us take a look at the crypto policy in the UK.
Holding and trading cryptocurrency is not banned in the UK. While this is not illegal, the country has set up its anti-money laundering laws. Every crypto investment is regulated through the FCA. Any exchange that wishes to initiate its operations in the UK needs to ensure that the company is registered under the FCA.
The UK stands in the top ten countries popular for crypto investments. While the total investment in 2018 was less than 2 million, the same investment has today increased to 10 million. This increase has happened in 2 years.
While no major shops accept crypto payments, you can buy certain products and services using crypto in the UK. Bitnewt is one such social media platform that accepts Bitcoins for media posts and marketing through the web.
Top 05 banks that are user-friendly with crypto users
Royal Bank of Scotland (RBS)
As the name suggests, the bank is owned by the UK government. The bank allows its investors to buy and sell cryptocurrencies using the bank account. However, these payments are allowed with those exchanges that are registered with FCA and do not support payment for any high-risk exchanges.
In addition to cryptocurrency payments, Solaris also allows you to undertake the custody of crypto coins. Using a programming interface, the ban in 2021 launched a regulated crypto brokerage service allowing for trading and custody of crypto tokens.
You can buy and sell any cryptocurrency token or coins using the debit and credit cards issued by this bank.
The nationwide bank currently does not implement any ban on buying and selling of cryptocurrencies. As an investor and bank customer, you can use bank-issued credit or debit cards for making payments. Considering the price volatility and market fluctuation, the bank has developed an algorithm to pick any transaction found unusual and approve the same after necessary due diligence.
Now, this bank name is not new in the UK or even outside the UK. As of today, Barclays holds assets of more than 1.3trillion and allows banking customers to buy and sell cryptocurrencies using their existing credit and debit cards. But, an important point for consideration is the internal ban implemented by Barclays in buying and selling cryptos using the Binance exchange. Since July last year, the bank does not allow any investment on this exchange and has also provided time for their bank customers to withdraw their funds from this portal with immediate effect.
To conclude, the UK government has been open to accepting cryptocurrency investments since the beginning. The number of crypto investments has also increased substantially in the past years. In addition to this, there is also an increase in the number of companies and online shopping sites that accept crypto payments these days. While crypto transactions come with high risk and price volatility continues, it is important to have a thorough understanding of the investment model before funding.