Crypto companies in the UK are struggling to get banking services, Bloomberg reported on Sunday, citing multiple sources. Local crypto executives have expressed frustration with rejected applications, frozen bank accounts and red tape.
The situation worsened when US lenders Silvergate Capital, Signature Bank and Silicon Valley Bank pulled out.
According to the report, the banking crisis in the UK is so serious that some companies have complained to the government. Despite Prime Minister Rishi Sunak’s efforts to establish the UK as a hub for digital assets, local banks are working against that goal.
Edouard Daunizeau, founder of SavingBlocks, a crypto startup that offers diverse portfolios to investors, revealed that he had difficulties protecting his company’s bank account.
According to the report, Daunizeau was turned down by seven of the nine creditors he approached to set up a bank account.
With current banking restrictions, UK lenders are already losing out to the rest of Europe. Data from venture capital (VC) research firm PitchBook showed that VC investment in digital asset companies fell 94% to $55 million in the first quarter to 2022, while the rest of Europe saw a 31% increase.
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