The United Kingdom’s new crypto regulatory framework will bring digital asset businesses under a much broader Financial Conduct Authority regime, but it will not automatically force banks to relax restrictions on customers sending money to cryptocurrency exchanges.The FCA published final perimeter guidance on September 16 explaining which crypto activities will require authorisation under the Financial Services and Markets Act 2000 once the new regime takes effect on October 25, 2027. Covered activities include operating crypto trading platforms, safeguarding assets, dealing and arranging transactions, staking and issuing qualifying stablecoins. However, the framework regulates crypto businesses themselves. It does not create a legal requirement for banks to process payments to an FCA-authorised exchange, nor does it override banks’ existing fraud, anti-money-laundering or risk-management policies.
Banks Retain Control Over Crypto Payment Policies
That distinction means UK banks can continue imposing their own restrictions even after crypto firms become fully authorised under the new regime. Chase UK currently blocks any outgoing payment it identifies as a crypto transaction, including bank transfers and card payments to crypto exchanges. The bank says the policy is designed to reduce fraud losses, although customers can still receive money from exchanges into their Chase accounts. NatWest currently limits identified crypto-exchange payments to £1,000 per day and £5,000 over any 30-day period. It says those limits are intended to address scam and fraud risks and can remain in place independently of customers’ normal payment limits.Barclays has also imposed specific restrictions. From December 2025, Faster Payments to cryptocurrency exchanges were limited to £2,500 per individual transaction and £10,000 per calendar month across relevant accounts. Barclays also applies a £10,000 monthly limit to crypto-related debit-card transactions and has prohibited crypto purchases using Barclaycard since June 2025. These controls are bank-level policies rather than restrictions imposed by the FCA’s forthcoming crypto authorisation framework.
FCA Regulation Could Reduce Risk Without Eliminating Restrictions
The new regime could nevertheless change how banks assess crypto businesses over time. From October 2027, firms carrying out regulated crypto activities in the UK will generally need FCA authorisation and must meet requirements covering financial resilience, governance, consumer protection, market integrity and operational standards. Stablecoin issuers will also face dedicated rules, while trading venues will become subject to stronger controls against market manipulation and insider dealing.That could make regulated crypto firms easier for banks to distinguish from higher-risk or unregulated platforms. But FCA authorisation should not be interpreted as a guarantee that a bank must accept payments to a particular firm. The FCA already stresses that existing registration under anti-money-laundering rules is not an endorsement or recommendation of a crypto business. Banks will therefore still be able to assess fraud patterns, customer losses, financial-crime exposure and their own risk appetite when deciding whether to block or limit crypto transactions.The regulatory transition is also gradual. Applications under the new regime open on September 30, 2026 and close on February 28, 2027 for firms seeking transitional arrangements, while the full framework is scheduled to begin on October 25, 2027. For UK crypto users, the practical result is that regulation and banking access remain separate issues. The government and FCA are creating a clearer legal framework for crypto companies, but individual banks will continue deciding how much exposure to crypto-related payments they are willing to permit.