UK Banks Stand Firm on Crypto Payment Limits Despite New FCA Regime

The FCA’s new authorization system, which begins in earnest on October 25, 2027, aims to bring stablecoin issuance, trading platforms, and custodial services under a cohesive regulatory umbrella. However, this oversight does not grant crypto firms a mandate for banking access. While the government has expressed a desire for licensed firms to receive fair treatment, it stops short of requiring banks to facilitate transactions with exchanges. Current policies remain a fragmented landscape of friction: Barclays and HSBC enforce monthly ceilings of £10,000, while others like Chase UK and Metro Bank maintain near-total or complete blocks on outbound payments to known exchanges. Industry data suggests that roughly 40% of attempted transfers are currently blocked or delayed, a trend that persists even as regulators work to formalize the sector. Parliamentary inquiries are now investigating whether these restrictions can be justified once firms operate under full FCA oversight, yet for now, the commercial risk appetite of individual banks remains the final word for retail customers.