Reports indicate that crypto companies in the United Kingdom are experiencing increasing difficulty gaining access to banking services, with some firms having their applications rejected or their accounts frozen. The difficulties are not restricted to a single bank or financial institution, as multiple sources told Bloomberg about the difficulties facing the cryptocurrency industry.

The few banks that are still willing to work with crypto companies are requesting additional documentation and details about how they monitor client transactions. The increased paperwork and scrutiny are frustrating crypto companies, with some reportedly complaining to Prime Minister Rishi Sunak’s administration.

A decline in venture capital investments in digital asset companies in the UK has added to the complexity of the situation. According to data from PitchBook, funding for such companies decreased by 94% to $55 million in 2023, while funding in other European countries increased by 31%.

The difficulties faced by crypto companies in the United Kingdom are not unique, as the industry has struggled with conventional banking institutions in other countries. Nonetheless, the difficulties are causing significant headaches for businesses attempting to innovate and expand in a market that is becoming increasingly competitive. It remains to be seen if UK banks will modify their approach to crypto firms, or if the industry will continue to face funding and regulatory challenges.