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Erica StanfordCrypto-Friendly Banks Providing Easy Transactions
Whether you're all for crypto or still skeptical about it, these digital assets are taking roots in various sectors... and among the many ones, banks.
By accepting crypto as a medium of monetary trade, these forward-looking financial entities are not only allowing lower transaction fees, they are also fueling an explosive growth pattern in the crypto industry.
Following is a vetted list of banks that are at the forefront of innovation:
Barclays
Barclays has a reputation for innovation in the crypto space, paying particular attention to blockchain technology
Their official position is a little confused, calling cryptocurrencies ‘the new gold’, but also labelling Bitcoin ‘almost uninvestable’
Barclays was in a partnership with Coinbase, and though this ended in 2019, it has not stopped account holders from purchasing crypto with their Barclays debit or credit cards
Some smaller crypto exchanges are reported to have issues in sending withdrawn funds to account holders due to Barclays refusing to process the transactions. Some accounts have even been frozen over this matter
The majority of users say that they’ve had no issues with Barclays in regards to performing crypto transactions
Credit and debit card transactions with Binance have been stopped due to regulatory uncertainty regarding this crypto exchange in the UK
BCB Group
Designed to be the best banking provider for the digital assets economy
FCA regulated as a business payments provider in the digital assets industry, which translated into normal words simply means ‘a crypto-friendly bank’
BCB is seen as the top crypto bank by many, offering banking, markets, and custody services to their users, with a major focus on B2B payments, FX, and crypto market liquidity
Their biggest rival is probably Xace, and BCB offers very similar services, with SEPA, SWIFT, FPS, and IBANs, as well as other payment methods
Crypto custody is offered, meaning you can trust BCB to look after your crypto, though the platform has high monthly and onboarding fees
BCB is aimed at a premium audience
Cashaa
‘Banking a Global Crypto Economy’ is their slogan, giving a good indication of what’s to come
Cashaa is targeted at businesses, especially crypto-related businesses such as exchanges, wallets, and brokers, who need a reliable partner that will not suddenly block their transactions
Banking and blockchain services are merged together to create an amazing B2B and B2C offering, with personal and business current accounts complemented by a custodial crypto service for over 70 foreign currencies and 4 cryptocurrencies
Cashaa goes further than most rivals by offering its own cryptocurrency token, CAS, which offers discounted onboarding and transaction fees, and can be staked to get account upgrades
The largest crypto-friendly challenger bank in the UK
Their customers include Paxful, Huobi, CoinDCX, and Nexo, to name but a few
UK, EU, and US current accounts are offered
One of the only banks in the world that offers account holders the opportunity to exchange one crypto for another, as well as offering internal FX conversions
Cashaa could be the disruptive bank of the future, with so many large traditional financial institutions turning their backs on crypto
Fidor
German banking company Fidor boasts Kraken as one of its clients, as well as Luno (the most popular exchange in South Africa), and offers a number of crypto-focused banking services to their clients
The bank allows its users to move freely in and out of crypto thanks to its partnership with Kraken
Fidor is the bank that creates banks, giving crypto exchanges (which often operate much like a bank) and other burgeoning financial institutions a platform to start on, as well as helping them get to market quickly and efficiently
The world’s oldest Fintech bank, giving them a great standing with regards to crypto regulation and compliance, having had more experience than any of their rivals
There are two different business and corporate accounts offered, one for exchanges and marketplaces in crypto, and another for the crypto trader business model
A Pay-as-you-grow pricing model keeps their services scalable
Nationwide
Debit card purchases of cryptocurrency from Nationwide accounts are currently permitted
Users can also withdraw or deposit GBP freely between their bank account and their cryptocurrency exchange accounts
There are no credit card transactions permitted, and it’s reported that SEPA transfers from Nationwide to Coinbase don’t work
The Nationwide Building Society announced in June 2021 that it would be paying more attention to crypto, blocking transactions that they thought were scams or fraud, and setting up scam warnings to users
A cryptocurrency policy review is underway, which could see Nationwide become less friendly towards crypto
NatWest
NatWest is owned by the Royal Bank of Scotland (RBS) Group and so offers more or less the same policies in regards to crypto
Credit and debit card transactions are typically permitted, though some cryptocurrency exchanges might be blocked, such as Binance
Depositing and withdrawing GBP to exchanges is typically permitted and seamless
NatWest has described the UK as a ‘paradise for crypto scammers’, shining a light on how sceptical it is in the long term
Some crypto exchanges have been blocked entirely, whilst others have been given daily deposit limits to reduce risk to account holders
Like RBS, NatWest does not permit business accounts that accept cryptocurrency as payment
Orounda
Orounda isn’t your typical bank, it’s a Scottish bank set up to provide corporate firms inside and outside of the EU with IBAN numbers
It has been operating for 6 years and offers SEPA and SWIFT wire solutions
Brands itself as ‘crypto-friendly’
An ideal payment partner for those who have a crypto business in the UK and want to accept customer deposits and payments easily
In total, they offer around 50 business solutions relating to payment methods, many of which can help businesses to accept crypto for goods and services
Ideal for businesses, with less of a focus on serving individual account holders
Revolut
Revolut started as an unlicensed challenger bank in 2015 and has gone on to offer accounts to over 2 million customers in the UK and EU
It was one of the first companies to offer a multi-currency card to help individuals avoid payment and withdrawal charges whilst in different countries
Later, Revolut became famous for offering cryptocurrency purchases within the app, directly from a EUR or GBP balance. Many users complain that these funds cannot be withdrawn to an external wallet, but as they can still capitalise on price rises, it means you simply need to trust Revolut as a custodian, which shouldn’t be an issue if you already trust them to look after your money
Targeted at individuals, rather than businesses
Royal Bank of Scotland (RBS)
One of the most crypto-friendly banks, as reported by personal account holders, who claim to have no issues when executing cryptocurrency transactions
RBS allows account holders to purchase cryptocurrency with a debit or credit card
It is easy to move GBP in both directions: when making your purchase on an exchange or withdrawing GBP from a crypto exchange platform to your bank account
In the past, one of the top RBS bosses publicly expressed his dislike for Bitcoin, comparing it to Dante’s Inferno in a very toxic rant, however, the bank’s position is that scams are likely and you should take great care, as they won’t stand in your way
Business account holders who accept cryptocurrency payments have been banned since April 2021
Standard Chartered Bank
SCB is friendly when it comes to making wire transfers or withdrawing funds from crypto exchanges like Coinbase and Gemini
However, they do not permit debit and credit card transactions on crypto-related websites
Standard Chartered Ventures (SCV), the investment arm of the bank, has announced plans for a cryptocurrency custody and trading desk, saying that ‘crypto-assets are here to stay’. This custodial service will be called Zodia and was officially announced in December 2020 in partnership with Northern Trust
Zodia is being designed to help institutions that bank with SCB to invest in emerging cryptocurrency assets, though it plans to start with some of the most popular coins upon launch, naming Bitcoin, Ethereum, Bitcoin Cash, Litecoin, and Ripple. The service will offer custody, meaning they will hold and protect the assets on behalf of investors, taking away that stress from those less tech-savvy
On June 2nd 2021, Standard Chartered also announced that they would be launching their own crypto brokerage and trading platform in partnership with Hong Kong’s OSL exchange.
Zodia and this yet unnamed exchange are separate entities that both highlight Standard Chartered’s crypto-friendly and progressive position
TSB Bank
TSB supports both credit and debit card crypto purchases
Large transactions are typically flagged by the bank
Withdrawing and depositing is said to be very smooth
TSB Bank has already cut ties with Binance, and is considering banning cryptocurrency purchases with all exchanges, though it is unclear what will happen regarding deposits and withdrawals
The bank is concerned that many cryptocurrency transactions are fraudulent, as much as one in eight, which, when combined with the poor levels of customer support offered by exchanges, is a recipe for disaster
TSB accused Binance and Kraken of failing to respond to claims of fraud, which both exchanges vehemently denied. TSB also said that around two-thirds of all fraudulent crypto-related activity takes place on Binance
Xace
Xace was built specifically to serve the needs of cryptocurrency holders and gamers, offering business and personal accounts for a new financial world
Both business and personal accounts in the UK are partnered with Faster Payments, whereas EUR accounts in the EU offer SEPA transfers. UK users can also make use of CHAPs and BACS payments
Xace is a registered FCA small payment institution
Account-holders can get virtual debit cards for Apple Pay and Google Pay, making online crypto purchases much easier
Perfect for crypto, eSports, eCommerce, freelancers and more, offering a crypto-friendly banking option that is not going to start blocking exchanges and their transactions