Youre a Brit who owns some Bitcoin! You are looking around, trying to find a bank that is Bitcoin-friendly. Its frustrating you to no end! In fact, they might even close your bank account should they spot any Bitcoin-related transactions! Let’s have a look at our full list of Bitcoin-friendly banks in the UK.
What banks are friendly to bitcoin users?
For years, customers have complained about banks covertly denying altcoin credit card purchases. However, recent announcements represent the first significant industry position toward altcoins. This position leaves investors questioning why it happened the way it did, which banks still allow credit card purchases of altcoins, and if it is even wise to buy altcoins with a credit card in the first place.
Lots of banks nowadays are not cryptocurrency friendly as they consider bitcoin and altcoins as high risk business. However, there are still options available for those who wish to use bank accounts and credit cards to purchase bitcoin. For example, the largest Canadian banks have indicated that they currently do not plan to restrict credit-line purchases of altcoins, barring that the merchant networks involved accept the transaction in the first place.
And how are the things going in the UK?
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Bankera
Bankera is building a digital bank to last for the blockchain era. The blockchain platform, based on the SpectroCoin project, will offer traditional banking instruments, which will use fiat money and cryptocurrencies. Being an operational arm of SpectroCoin, Bankera seeks to be a fully-functional bank that offers payment accounts, interbank foreign exchange rates, debit cards, lending—allowing altcoins as collateral—and payment processing. The UK based Bitcoin exchange boasts more than 300k users and has issued more than 50k Bitcoin debit cards.
All Bankera clients will be able to benefit from higher interest rates due to proprietary information about borrowers’ cash flow, as most loans will be given to business clients who use the payment processing solution.
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Bank of England
Bank of England is carrying out research into digital currencies and the technology that supports them. Their Financial Policy Committee has assessed private digital currencies and concluded that while the underlying technology has potential, they do not currently pose a risk to monetary or financial stability in the UK.
The well-known bank is still considering whether to issue its own cryptocurrency and continues with its research. In case of issuing digital currency, people would be able to store the value as well as make payments in the digital currency. At the moment it provides banks with electronic accounts, however, the Central Bank issues money in physical form.
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Virgin Money
Virgin Money is a financial services brand used by three independent brand-licensees worldwide. Virgin Money branded services are currently available in Australia, South Africa and the United Kingdom. Virgin Money UK has joined Lloyds Banking Group in banning customers from buying Bitcoin and other digital currencies with their credit cards.
“Following a review of our policies, I can confirm customers will no longer be able to use their Virgin Money credit card to purchase cryptocurrencies,” a spokesman for Virgin Money told Reuters. “This only applies to our credit cards and not our debit card.”
So, again, this isn’t Virgin Money saying that its customers can’t buy cryptocurrency. They just can’t buy crypto with credit cards. It’s Virgin Money saying that it’s not going to lend its customers the money they require to buy cryptocurrency.
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Barclays
San Francisco-based exchange, Coinbase, said its UK subsidiary was the first to be granted an e-money license by the UK’s financial watchdog, a precursor to getting the banking relationship with Barclays.
The Barclays account will make it easier for British customers. Previously, they had to transfer pounds into euros and go through an Estonian bank.
A Barclays spokeswoman said: “At present UK customers can use both their Barclays debit card and Barclaycard credit card to purchase cryptocurrency legitimately. We take precautions to assess affordability before extending credit, flag and prevent any suspicious transactions and also closely monitor credit risk.”
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Monaize
Monaize seeks to cater to freelancers, entrepreneurs, and small enterprises in France and the UK by providing business facilities that have previously been denied to cryptocurrency investors. Monaize is a 100% mobile e-banking platform available as a mobile app.
To open a UK account, you need to be a Director in a British company and reside in the UK. You will be asked for the following information:
- Company name and registration number.
- Passport belonging to a company director.
- Proof of address belonging to a company director.
The Monaize token will become an essential part of the platform’s upcoming services and technology integrations. The token itself will be issued using the asset chain technology provided by the Komodo Platform and will use the equihash algorithm, DPoW protection mechanism, and on-demand block generation.
Summing things up
Large global banks have been reluctant to do business with companies that handle bitcoin and other digital coins because of concerns they are used by criminals to launder money and that regulators will soon crack down on them. But there are still banks who are bitcoin-friendly in the UK as they believe in the prosperous future of cryptocurrency.
See also: Bitcoin friendly banks in the US