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Banks Become Hostile to Crypto Firms Challenging UK’s Crypto Hub

Published 02/04/2023, 09:10
Updated 02/04/2023, 09:15
Banks Become Hostile to Crypto Firms Challenging UK’s Crypto Hub

  • SavingBlocks’ application for a corporate account has been denied by seven banks.
  • Two banks that responded positively, asked for additional documentation later.
  • The indifferent behavior of the banks poses a challenge to the UK’s dream of becoming a crypto hub.

Latest reports revealed that the DeFi-powered crypto fintech, SavingBlocks’ application for a corporate account has been denied by seven banking service providers in London, posing a challenge to the country’s dream to establish a global crypto hub.

Reportedly, SavingBlocks, the crypto company owning more than 200 customers, has contacted nine banking service providers for attaining a bank account but was rejected by seven of them.

In addition, the two banks that positively responded to the proposal at the initial stage have been troubling Edouard Daunizeau, the company CEO, over the past few months, asking for additional documentation, with the details of client transaction processes.

Significantly, Daunizea asserted that it is difficult to find service providers, adding:

There aren’t many options available – most traditional banks won’t offer banking services to crypto firms. With the recent string of events, it will be even tougher. We are seeking licenses in France where we think it will be easier.

Notably, the UK’s Prime Minister Rishi Sunak, while being the Finance Minister under former Prime Minister Boris Johnson, declared that he aspires to make the UK a crypto hub, claiming that the measures they have outlined would “help to ensure firms can invest, innovate and scale up in this country”.

However, since February, the conditions of the country have been proving unfavorable for fulfilling the Prime Minister’s dreams. For instance, some banks implemented restrictions on the money that the customers can shift onto crypto exchanges.

Further, the UK crypto executives commented that there exists a wide range of issues that barricade the efforts of the crypto space. They posited that the banking services are hostile to them; the banks even reached Sunak’s government raising complaints against the crypto firms.

The post Banks Become Hostile to Crypto Firms Challenging UK’s Crypto Hub appeared first on Coin Edition.

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