Lobbying groups and lawmakers in the United Kingdom are calling on the government to act because cryptocurrency clients can’t find a bank and face restrictions.

Several banks are limiting their interaction with the crypto sector entirely, making it difficult for many U.K. crypto companies to obtain banking services.

Since Silicon Valley, Silvergate, and Signature banks collapsed, U.S. crypto clients have had to find new financial partners. However, companies in the U.S. aren’t the only ones experiencing this dilemma. Crypto banking has been a problem in the U.K. since 2021.

In a letter to the Treasury’s Economic Secretary Andrew Griffith on Monday, Su Carpenter, director of operations at CryptoUK, expressed concern that other banks and Payment Services Providers (PSPs) may soon follow suit after many of the major U.K. banks have already instituted bans or restrictions. Digital assets are a priority for CryptoUK, a lobbying group.

U.K. banks have also been blocking transfers to crypto exchanges, according to complaints on Twitter.

A member of parliament and chair of the Crypto and Digital Assets group, Lisa Cameron, told CoinDesk that crypto businesses have been unable to open bank accounts with Santander and NatWest Group.

According to a NatWest spokesperson, the bank does not “currently offer banking facilities to businesses that buy or sell cryptocurrencies. This is a rapidly evolving space in the U.K. and we keep our stance under constant review.”

“We make all decisions about onboarding new bank businesses on a case-by-case basis based on the specific details of each business,” a Santander spokesperson told CoinDesk in a statement. According to Twitter, U.K. banks have banned crypto exchange transfers.

Crypto businesses have been unable to open bank accounts with Santander and NatWest Group, according to Lisa Cameron, the chair of the Crypto and Digital Assets group.

Currently, NatWest does not offer banking facilities to businesses that buy or sell cryptocurrencies. This is a rapidly evolving market in the U.K., and we keep our stance under constant review.”

A spokesperson from Santander told CoinDesk: “We make all decisions about onboarding new customers based on their specific circumstances.”.Banks limiting crypto payments

In recent years, UK banks have been withdrawing from crypto. In February, Alison Rose, chief executive officer of NatWest, told the House of Commons Treasury committee that the bank had been blocking retail and wealth customers from transferring their assets into crypto assets due to volatility and stability. Rose also cited fraud as another reason.

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Crypto advocates said numerous banks are restricting their interaction with the sector altogether, which makes it difficult for U.K. crypto companies to obtain banking services.

Crypto clients in the U.S. have had to search for new banking partners after Silicon Valley, Silvergate, and Signature banks collapsed. However, the U.S. is not the only country dealing with this issue. Since as early as 2021, the U.K. has had a crypto banking problem.

“Many of the major U.K. banks have now put in place bans or restrictions, and CryptoUK is concerned that other banks and Payment Services Providers (PSP) may follow suit shortly,” wrote Su Carpenter, director of operations at CryptoUK, to the Treasury’s Economic Secretary Andrew Griffith on Monday. The CryptoUK lobbying group advocates for digital assets.

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On Twitter, people have also complained that U.K. banks have banned transfers to crypto exchanges.

In a statement to CoinDesk, Lisa Cameron, a member of Parliament and chair of the Crypto and Digital Assets group, said crypto businesses have been unable to open bank accounts with Santander and NatWest Group.

According to a NatWest spokesperson, the bank does not currently offer banking facilities to businesses that buy and sell cryptocurrencies. This is a rapidly evolving market in the UK, and we keep our position under constant review.

The decision about onboarding new bank businesses is made on a case-by-case basis based on the specific details of each business, a Santander spokesperson said.

Crypto payments are being limited by banks

In recent years, UK banks have withdrawn from cryptos. In a hearing in February, Alison Rose, the chief executive of NatWest, told the House of Commons Treasury committee that the bank was “blocking retail and wealth customers from transferring into crypto assets due to volatility and stability.” Rose also cited fraud as a contributing factor.

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To protect consumers from “crypto-criminals,” NatWest began limiting customer payments to crypto exchanges in March to 1,000 British pounds ($1,232) per day and 5,000 British pounds ($6,161) per 30-day period.

To protect their consumers, many banks have restricted crypto purchases to exchanges. Nationwide and HSBC both announced restrictions on crypto purchases at the same time.

As of last year, Spanish bank Santander, with branches in the United Kingdom, limited transactions with crypto exchanges to 1,000 pounds per transaction, while Starling bank, based in the U.K., no longer supports cryptocurrency transactions with debit cards or bank transfers, and it has never directly partnered with crypto companies.