Crypto businesses in the United Kingdom are reportedly facing difficulties in obtaining banking services, with banks ramping up requirements and demanding more documentation and monitoring of clients' transactions. Some crypto firms have reportedly voiced their grievances to Prime Minister Rishi Sunak's government, contradicting Sunak's ambition to foster fintech innovation and transform the UK into a global cryptocurrency hub. The challenges faced by UK-based crypto businesses seem to be more acute than those faced by their EU counterparts, as the EU's effort to lay down a framework for digital assets is reportedly making banks in other countries more welcoming to crypto firms. Venture capital investment in digital asset companies in the UK has plummeted by 94% to $55 million in 2023, while other European countries have seen a 31% increase. Crypto businesses are reportedly turning to payment service providers to keep their UK operations afloat.

(By Siamak Masnavi)