Revolut Named Most Crypto-Friendly Bank in the UK
Revolut has become the most cryptocurrency-friendly bank in the United Kingdom.
According to a report by Recap, Revolut stands out from other banks by allowing customers to trade cryptocurrencies directly through its mobile banking app and providing them with educational materials to enhance their understanding of digital assets.
“Not only do users benefit from a seemingly unlimited exchange limit, but the global neobank is also the only one that permits users to trade through mobile banking apps,” the report said.
It claimed that the bank’s customers also benefit from a ‘Crypto Learn and Earn’ scheme, which allows them to earn crypto rewards in return for completing lessons
Monzo came a close second, offering a number of similar features to Revolut.
In contrast, traditional banks such as HSBC and Natwest have implemented stringent limitations on cryptocurrency purchases, allowing customers to transact only within a range of £2,500 to £5,000 per month.
UK Crypto Users Face Challenges When Filing Taxes
The report highlights how restrictive regulations and limited cryptocurrency services can create difficulties for individuals when filing their taxes.
The clash between traditional banking institutions and the world of cryptocurrencies has been escalating in recent years.
Banks have adopted a risk-averse approach, imposing tighter controls on both inbound and outbound cryptocurrency transactions, particularly following the collapse of FTX, a prominent cryptocurrency trading platform.
Some banks have even restricted card payments to Binance, a different exchange, in response to a warning from the UK’s Financial Conduct Authority (FCA) regarding Binance’s regulatory compliance.
“The risk averse approach being taken by UK banks to both the banking of crypto firms and the blanket bans on transactions from account holders to crypto exchanges totally goes against the Government’s well publicised ambitions for the UK to become a global crypto hub,” Su Carpenter, director of operations at CryptoUK, commented.
The report further revealed that the risk-averse policies of banks, including outright prohibitions on cryptocurrency transactions, have led to dissatisfaction among investors.
The research indicates that 22% of cryptocurrency investors are considering switching banks, and 38% have already done so due to issues related to trading digital assets.
While traditional banks continue to shy away from cryptocurrencies, digital banks and financial apps are capitalizing on this opportunity.
These more progressive institutions are reaping the benefits of embracing cryptocurrencies and attracting customers who value the potential of digital assets as a path to financial independence.
The UK has been actively working towards creating a regulated environment that fosters the growth of the crypto ecosystem while protecting users from fraudulent activities.
Just recently, the country’s National Crime Agency (NCA) announced plans to establish a specialized cryptocurrency and virtual assets team dedicated to countering these illicit activities.
The team will focus on investigating crypto-related crimes and will be positioned either within the National Cyber Crime Unit (NCCU) or the Digital Asset Team.
“The role will support existing and new investigations where specialist cryptocurrency experience is required along with taking a proactive lead in identifying targets for further development,” the agency said in a recent post.