UK banks may continue blocking crypto payments despite new FCA regime

The UK’s Financial Conduct Authority (FCA) is set to implement a new regulatory regime for cryptocurrency firms starting October 25, 2027. Under the Financial Services and Markets Act, firms involved in activities such as trading, custody, staking, and lending will require formal authorization.

Despite this move toward stricter oversight, the FCA’s new regime will not mandate that banks allow cryptocurrency-related transactions. Currently, nine of the ten largest retail banks in the UK impose restrictions on crypto payments, with some, like Chase UK, blocking outgoing transactions entirely, while others, such as HSBC UK, implement specific limits.

This regulatory environment creates a split for consumers, as access to FCA-authorized exchanges will depend on individual bank policies. The transition period for firms to apply for authorization is scheduled to run from September 30, 2026, to February 28, 2027.