JUST IN: U.K. banks can keep blocking payments to crypto exchanges — The Banker. • Regulators won't force banks to allow $ transfers. • Exchanges will require FCA license by Oct. 2027.

What happened

The U.K. will not force banks to allow payments to crypto exchanges, so banks can keep blocking them. Additionally, crypto exchanges will need a license from the FCA, the U.K. financial regulator, by October 2027.

Confirmed

Global impact / market context

If banks block payments, everyday investors may find it harder to buy crypto, potentially reducing trading volumes. The FCA license requirement adds a regulatory hurdle, which could increase compliance costs for exchanges, possibly leading to higher fees for customers.

Analyst inference

This regulatory stance signals the U.K. is tightening oversight of crypto, which may discourage some investors. For exchanges, needing a license means extra paperwork and costs, potentially affecting their profit per sale. It could also slow the growth of the U.K. crypto market.

Analyst inference

What to watch

1. Watch how many U.K. crypto exchanges successfully obtain the FCA license by October 2027, as failures could reduce the number of available platforms and limit investor choices. Analyst inference
2. Investors should consider that if major banks continue blocking payments, it may become harder to convert cash into crypto, possibly leading to lower demand and price pressure on digital assets. Proposed
3. Monitor whether the FCA license requirement leads to increased costs for exchanges, which could be passed on to consumers as higher trading fees or reduced services. Analyst inference

Evidence

• x.com