We recently wrote that Binance will no longer allow low-value bank transfers due to new requirements from the trading platform’s banking partners. The bank in question was Signature Bank, which went bankrupt soon after. Now it seems that more banks are not supporting crypto companies, particularly in Great Britain.

Bank of England anti-crypto?

It writes Bloomberg based on several interviews. Among the banks making transfers to crypto companies difficult are HSBC and Natwest – and banks that are still doing business with companies in this sector are asking for more documentation. Requests from companies have been denied, accounts have been blocked and the amount of documents is overwhelming.

The situation is so dire that some crypto companies have even complained to Prime Minister Rishi Sunak’s government. “The reaction of the UK banking system was more acute than that of the EU,” said Tom Duff-Gordon, vice president of Coinbase international policy.

Rthe pro-crypto Sunak government?

One of Sunak’s main focuses is that he wants to turn the UK into a crypto hub. He wants favorable regulation and progressive talks with crypto companies. In fact, the British government wants to issue an NFT series with the Royal Mint.

In the fall of 2022, it was discovered that the UK banking system was in trouble after the bonds banks used as collateral fell too hard in value. As a result, the British pound was even more volatile than bitcoin (BTC). It was positive for bitcoin at the time, but less positive for banks. They now seem to want to protect themselves from worsening conditions.

The British pound is now more volatile than Bitcoin

— Erik Voorhees (@Erik Voorhees) September 26, 2022

However, Sunak plans for a suite of Non-Fungible Tokens (NFTs) now also deleted. The proposal will be postponed for the time being because tokens will be too speculative. People only want to buy it if they are willing to lose their investment. For now, the government still seems pro-crypto, but banks are less than happy with the sector.