UK Banks Block 40% of Crypto Transfers, Survey Reveals

VADODARA, January 26, 2026 — Major UK banks are blocking or delaying approximately 40% of transfers to cryptocurrency exchanges. This data comes from a new survey-based report by the UK Crypto-Business Council (UKCBC). The latest crypto news reveals systemic friction in on-ramp liquidity.

Investigation: Systemic Banking Restrictions Exposed

According to the UKCBC report, eight of the top ten centralized exchanges in the UK reported increased transfer issues. No exchange reported a decrease. The survey methodology targeted direct customer transaction data over the past 12 months. This indicates a coordinated banking response rather than isolated incidents.

The UKCBC argues banks use regulatory compliance as a pretext. They claim this hinders financial sector growth. Consequently, crypto users face effective exclusion from traditional banking services. The council acknowledges industry efforts to combat fraud. However, they state broad regulations remain a major obstacle.

Market Context & Historical Precedent

Historically, banking restrictions create artificial supply shocks. This mirrors China's 2021 mining ban. That event initially suppressed prices but led to a redistribution of hash rate. In contrast, current restrictions target fiat on-ramps directly. This impacts retail liquidity more severely.

Underlying this trend is a global regulatory divergence. The EU's MiCA framework offers clarity. The UK's approach remains fragmented. This creates jurisdictional arbitrage opportunities. Exchanges may shift operations to more favorable regions.

Related regulatory developments continue to shape the . For instance, the U.S. Senate recently delayed its market structure bill markup. Meanwhile, fintech infrastructure plays like Zerohash are seeking major funding after acquisition talks collapsed. These events highlight the complex interplay between regulation and innovation.

Technical Architecture & Price Action

Market structure suggests these restrictions act as a liquidity vacuum. They remove buy-side pressure from the order book. Bitcoin currently trades at $88,196. This represents a 24-hour decline of 0.46%. The price sits below the critical 50-day exponential moving average.

On-chain data indicates reduced exchange inflows from UK IP addresses. This correlates with the reported blockage rate. A key Fibonacci retracement level at $85,000 (0.618 of the recent swing) now serves as major support. If broken, it would invalidate the current consolidation structure.

Volume profile analysis shows thinning liquidity near current prices. This increases volatility risk. The Relative Strength Index (RSI) reads 42, indicating neutral momentum with a bearish bias. Market participants should monitor the $92,000 resistance level for any breakout attempts.

By The Numbers

Why It Matters

This matters for capital formation. Restricted fiat flows compress exchange reserves. That reduces market-making capacity. Institutional liquidity cycles depend on efficient settlement. Delays disrupt arbitrage and hedging operations.

Retail market structure suffers most. Small investors face disproportionate hurdles. This contradicts the Financial Conduct Authority's consumer protection mandate. It also pushes activity toward unregulated peer-to-peer venues. That increases counterparty risk.

The Bank of England's discussion papers on a digital pound highlight the tension. Traditional banks may see crypto as competitive to their digital currency plans. Restricting access protects their incumbent position. This strategic behavior has precedent in other technological disruptions.

Expert Commentary

"When banks restrict flows, they create artificial supply constraints. This distorts the natural price discovery mechanism. Historical data shows such friction eventually leads to regulatory pushback or innovation workarounds. The current situation tests the resilience of crypto's decentralized ethos against traditional financial gatekeeping." — CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Two primary scenarios emerge from current market structure.

• Bullish Invalidation Level: $92,000. A sustained break above this resistance with high volume would signal institutional absorption of selling pressure. It would indicate the banking restrictions are not impacting larger capital flows.
• Bearish Invalidation Level: $85,000. A weekly close below this Fibonacci support would confirm a breakdown. It would suggest the liquidity drain is causing broader market capitulation.

The 12-month institutional outlook remains cautious. Banking restrictions increase operational costs. That may delay ETF approvals and other regulated products. However, innovation often accelerates under constraint. Projects focusing on decentralized fiat on-ramps or on-chain capital formation could benefit. Partnerships in less restrictive regions, like Ripple's expansion in the Middle East, may redirect liquidity flows globally.