Check out these 6 crypto-friendly banks in the UK.
Best Crypto-Friendly Banks in the UK
Which bank is best for cryptocurrency?
There’s no clear answer on which bank is best for cryptocurrency and banks’ systems and policies can quickly change. Royal Bank of Scotland is a government-backed bank that does permit payments, and so could be a safer option.
Do banks accept cryptocurrency?
Banks don’t accept cryptocurrency as a form of currency, so you can’t pay into your bank with crypto. Instead you’d need to sell your cryptocurrency and then transfer the proceeds from the sale to your bank, which is what a crypto exchange is used for.
However, many banks view crypto exchanges as risky, and so payments can be blocked in both directions. If you’ve made money from crypto and then want to cash out, make sure you’re with a bank that won’t hold up your money or refuse to accept the payment at all.
How will cryptocurrency affect banks?
Some people believe that decentralised currencies such as cryptocurrencies could kill off central banks, since people who used crypto wouldn’t need to use their banks in the same way and could get around banking fees.
In reality, the banks are some of the largest organisations in the world and they won’t let themselves be passed by in favour of digital currency. If it continues to grow in popularity then expect the banks to try to take ownership, or at least become more heavily involves, so that they retain their stake in customer finance.
Are cryptocurrency exchanges regulated?
All cryptocurrency exchanges operating in the UK must be registered with the Financial Conduct Authority and are regulated, meaning they must comply with the Money Laundering Regulations.
However exchanges are not protected by any regulation scheme, so if you lose money on an exchange you wouldn’t be able to get it back. Crypto is still seen as a high-risk investment.
Will cryptocurrency replace flat currency?
Some major names in the finance industry have claimed that cryptocurrencies could (or will) replace flat currencies that already exist. But there’s no way of knowing this yet. How we bank will change as the world becomes more digital, but exactly how that looks is unclear for now.
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