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CryptoUK Calls on Regulators to Address Bankruptcy of Digital Asset Firms

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Self-regulatory trade association CryptoUK It has been proposed to facilitate a “whitelist” of companies registered in the UK to deal with banks to limit or ban cryptocurrency transactions.

In separate letters to the Chancellor of the Exchequer of the United Kingdom, Andrew Griffith, and to members of the Financial Conduct Authority and the Payments Regulator dated 21 March, CryptoUK said that many banks had begun to impose an outright ban on dealing with crypto businesses “instead of taking a risk-based, case-by-case approach”. The association proposed the creation of a “white list” of registered crypto companies that would allow them to transact with banks freely, without limits or the threat of bans.

“Many of the UK’s major banks have already implemented bans or restrictions, and we are concerned that other banks and payment service providers (PSPs) may soon follow suit,” said CryptoUK. “We believe that the government’s action is now justified.”

CryptoUK and members write to Andrew Griffith & UK Regulators regarding more UK banks introducing blanket limits or bans on transfers from customer accounts to cryptocurrency exchanges. ban on crypto purchases

Click below to view the full CryptoUK charts

According to the UK’s Financial Conduct Authority, cryptocurrency service providers in the country must be registered and comply with anti-money laundering regulations. Some banks in the UK, such as HSBC Holdings and the Nationwide Building Society, have banned retail customers using credit cards from buying cryptocurrency.

CryptoUK’s proposal echoed the concerns of digital asset advocacy groups and US lawmakers following the bankruptcies of pro-crypto Silvergate Bank, Silicon Valley Bank and Signature Bank. The US-based Blockchain Association requests for information submitted to the Federal Deposit Insurance Corporation, the board of governors of the Federal Reserve System, and the Office of the Comptroller of the Currency regarding the potential “debanking of crypto companies.”

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