Cryptocurrencies are well on their way to becoming accepted currency worldwide. Initially, crypto was frowned upon. An option that had many UK bank account holders have their accounts cancelled and their funds frozen merely because they used them to withdraw or transfer money to or from a cryptocurrency exchange.
Over the years, the relationship between banks and the cryptocurrency industry has improved, largely because of changes in the law and the undisputed change that crypto brings. Although the UK still doesn’t consider crypto a currency, it is viewed as a property asset, although there is no physical property to own.
Because there are some concerns around the industry, such as the lack of regulation, lack of consumer protection and volatile nature of cryptocurrency, many banks are reluctant to hold or allow their customers to trade in crypto.
However, some crypto-friendly services understand the system and allow customers with an appetite for crypto to use their knowledge in the industry to trade and even make money from crypto. The emergence of such options has been increasing, and it is crucial that you find the best one for your crypto trades. We have selected some of the best ones in the industry that you can get started with.
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What are Crypto-friendly Banks?
Crypto-friendly banks are institutions and services that facilitate transfer, withdrawal and trading in cryptocurrency with almost no restrictions. With a crypto-friendly banking service, you can do the following:
- Purchase cryptocurrency using your debit cards
- Withdraw money from your crypto wallet and deposit it into your current account
- Make payments to the crypto exchange
Although the relationship between banks in the UK and cryptocurrency has come a long way, not all banks are crypto-friendly, and among those that are, the benefits and services vary. As a crypto investor, you have to choose your service provider carefully for the best experience and maximum benefits.
Which UK Banks are the Most Crypto-Friendly?
The best options depend on what you’re looking for. Sometimes that can vary depending on the benefits you want. But with a good understanding of cryptocurrency and crypto traders and what they’re looking for in a crypto-friendly bank, it’s not hard to come up with parameters and compare them to the different crypto-friendly platforms to highlight some of the best options in the market. Here are some of the best ones.
Pay iO
Pay iO is a unique digital payment solution offering various financial features for its account holders. Please note, Pay iO is not a bank but a good alternative that allows purchasing of crypto. Among its features is a robust crypto service that instantly lets you buy and sell crypto online. Pay iO has a fast onboarding process and an easy-to-use UI that will have you trading crypto almost instantly after signing up. Because Pay iO is a licensed third-party provider, you can link it with your bank account and use it to move your funds back and forth from your crypto trading.
One of the ways to tell if a service is the best in cryptocurrency is by looking at the features of its service. Through the features, you can easily determine the benefits you stand to gain from using the service. Pay iO has among the most comprehensive features you can find in crypto-friendly banks. These include the following:
Crypto wallets
Crypto wallets are the lifeline for trading or dealing in crypto. As a big believer in crypto adoption, Pay iO has a robust crypto wallet that you can use to store, send and HODL your crypto. The wallet features premier security features that will keep your crypto coins safe and secure regardless of your crypto strategies.
Safety and Security
As with money, safety and security are primary concerns with cryptocurrency, particularly considering how valuable and vulnerable they can be. Pay iO has partnered with leading safety and security specialists in cryptocurrency to provide strong, safe and reliable solutions that keep your funds safe but don’t limit your activities. The security features address crypto exchanges’ most common security concerns, like cross-site scripting and code vulnerabilities. Users can also opt to use advanced security features like 2-step verifications to enhance the safety of their crypto accounts.
Seamless onboarding
Most crypto services are overly zealous about security. In an effort to incorporate the latest security features, they make the signup and onboarding process a nightmare for crypto investors. The platforms are riddled with lengthy signup processes and unending questions. In a few minutes and a few clicks, you can be on your way to starting your crypto journey on Pay iO. You will have your ledger within 24 hours, and you can start sending, receiving and exchanging crypto.
The seamless onboarding process doesn’t compromise the safety of your wallet or crypto trades. Pay iO proves it is possible to provide crypto traders with a seamless experience without compromising security.
Digital Friendly
The crypto world is fast-moving. You need a provider that can keep up with the economic changes and adapt to ensure you’re ready for the digital economy and everything it offers or throws your way. A digital-friendly platform that has all the tools for information and trends is vital in helping you make the biggest and the best crypto trades.
Currency exchange
Most crypto-friendly banks make the lion’s share of their profits through currency exchange, usually at the expense of the crypto trader or account holder. Besides the bells and whistles, such platforms offer, you should also consider their currency exchange rates. Some of the providers might use these benefits to lure you in and make a killing by giving you unfavourable rates on the exchange rates.
Pay iO always gives you the real mid-market rate. Instead of making money from your currency exchange rates, the platforms only charge one low fee to exchange currencies. You maximise your profits by getting the best rates.
Robust tracking features
Pay iO has easy-to-generate crypto statements. You can keep track of your crypto invoices easily. It is a handy tool you can use to keep track of your crypto moves and expenses and determine whether you’re making progress or losses. It’s also the most overlooked feature in most other crypto-friendly banking providers.
It’s easy to see why Pay iO is a leading cryptocurrency banking provider. With extensive features and premium security features, you find everything you need in one provider.
Revolut
Revolut is a robust, revolutionary banking app that also favours crypto. Although not as comprehensive and crypto-centric as Pay iO, Revolut does have its strong points and reasons why crypto traders and holders should consider opening an account with this banking solution. One of the highlights of using Revolut for your crypto escapades is it has personal and business crypto accounts. You can choose which one serves you better based on your needs and the volume of crypto trades.
Revolut’s extensive range of features helps crypto traders and holders make the most out of the market with the least effort. As previously mentioned, with Revolut, you can choose to open a personal or business crypto account, depending on preference. Expectedly, a business account has more options than a personal account. Other interesting crypto features from Revolut include:
Buy, hold, and sell multiple cryptocurrencies
Bitcoin is the most popular type of cryptocurrency but is not the only one. With Revolut, you can buy, hold and sell Bitcoin and ether directly on the mobile app or the website using the 30+ fiat currencies that Revolut supports. In addition, because it’s a digital platform, you can make crypto transactions anytime, 24/7.
In-app notifications
The Revolut app allows you to monitor your portfolio anytime. More importantly, it has a built-in in-app alert system that notifies you when your coin hits your desired prices, so you know when to make all your big moves. You also have access to live and historical prices to help you make informed decisions on your crypto trades.
Security and safety
Personal and business crypto accounts on Revolut come with advanced security and safety features. You can choose which team members can set up transactions from the business end and who can view your portfolio. Most of your funds are held in offline cold storage with trusted custodians for added security.
Market news
Here’s something you won’t see on most crypto-friendly banks. The Revolut app gives you the latest market news directly in-app. It’s a critical feature that can help you take advantage of trending crypto news before the information gets cold.
Make any card a crypto card
You’re not limited to holding, receiving and sending cryptocurrencies in your Revolut crypto wallet. You can also start making payments with your crypto balance. You can choose your card and pay for products and services using your preferred crypto. However, exchange fees will apply. These also vary depending on the crypto and currencies in question.
Quick setup
A simplified signup process allows for easy and fast signup. You can have your cryptocurrency account ready and set up in minutes. You don’t need to be an expert to set up your profile.
Revolut offers many exciting features aligned with crypto-friendly banks. However, they are a little sketchy with their exchange rates and commissions which is why they settle down for the second place on the list.
Fidor
Fidor is one of the first banks to support cryptocurrency and has never looked back. Although not legally bank itself, Fidor has acted as a springboard for many banks and banking solutions. It offers a range of innovative cryptocurrency products. Fidor customers can integrate crypto wallets directly into their Fidor account through an API.
Fidor has extensive cryptocurrency features. Being a pioneer in a field that was initially held in disdain by most banks, Fidor has a strong position in the cryptocurrency industry and the right features to attract crypto lovers.
Trade instantly
Fidor offers a simple and fast signup process. You can instantly buy and sell Bitcoins and other cryptocurrencies in real-time once you create your Fidor account. The innovative platform offers unique account types that you can use to fuel your crypto account. In addition, you can purchase cryptocurrencies using various currencies directly in the Fidor account.
Access your account from anywhere in the world
Fidor has a smart current account option that packages all your financial solutions in one place and is accessible from anywhere in the world as long as you have an internet connection. Travelling cryptocurrency traders can keep an eye on their accounts anytime and send and receive cryptocurrencies.
Security
Being the first crypto-friendly bank means Fidor understand the security challenges that come with cryptocurrency. As a result, the bank has developed a robust security system to stifle online fraud and cyber-criminals.
Fidor provides customers with essential security information and tips on avoiding scams and better securing their accounts. But besides that, the bank also has built-in security features that improve safety for your crypto account and its other customers as well.
These features include pushTAN, mTAN and FIN authentication processes. These provide authentication with a second factor. These are essential features that make your account more secure and drastically reduce the chances of fraud.
Fidor offers a crypto-friendly platform with all the basics. It might not have the bells and whistles that higher-ranked options offer, but it has everything you need to get started and send and receive cryptocurrency using a secure account.
Cashaa
Cashaa is a new entrant in the cryptocurrency space. It launched its cryptocurrency accounts no so long ago through a yield program that enables users to store, buy, sell and earn interest without risking your crypto assets.
Cashaa offers two primary cryptocurrency accounts; a Flex earning account that offers up to 13 per cent interest rate with no locking and a fixed deposit account that can earn up to 24 per cent interest. These options are available for both personal and business users.
Some of the features that make Cashaa an attractive option for crypto investors include;
One wallet for all your needs
You don’t need to create multiple accounts on Cashaa to manage your crypto assets. Instead, you can use the same account to buy, exchange and earn interest on your assets. The account supports multiple cryptocurrencies, and you can buy or transfer crypto and fiat.
Quick setup
A Cashaa account is quick to set up. In a few minutes, you should have the account set up and ready to start sending and receiving cryptocurrencies. You can also start earning interest on the cryptocurrencies you’re holding in your account. The reduced setup time allows crypto traders to start earning on their assets within a short time.
Competitive rates and no hidden fees
Handling cryptocurrencies can be expensive without the right crypto-friendly bank. The price slippage when converting, sending and receiving crypto can wipe out most of your gains in crypto. Cashaa has a transparent fee policy with clear rates from the start.
Cashaa charges a flat rate fee of 1% on each transaction. The expenses are competitive rates and at the best exchange rates giving you the best ROI and yield rates.
Traditional Crypto-friendly Banks
Traditional banks haven’t always been pro-crypto. In the past, they’ve come up with an impressive way to defeat the crypto wave. But recently, they’ve slowly started changing tune. Currently, some of the largest banks in the UK allow their customers to buy, sell, and trade crypto – with limitations. Here are some traditional crypto-friendly banks in the UK and what they offer.
Royal Bank of Scotland and NatWest
Natwest and Royal Bank of Scotland are the most crypto-friendly banks traditional banks in the UK. RBS, which owns NatWest, provides clear crypto information for its customers. Both banks have a dedicated crypto page on their websites that answers all cryptocurrency questions.
Although both banks have restrictions on some payments and cryptocurrencies that they deem high risk, they have a decent enough crypto offering to be considered crypto-friendly.
The bank allows deposits and withdrawals to exchanges and crypto debit card purchases. Customers don’t have any problems executing transactions on reputable cryptocurrency websites. However, you might have challenges if there is a high risk of scams reported on the platform you use. However, you can’t accept payment for goods and services on crypto using RBS and NatWest accounts.
Barclays Bank
Barclays is one of the biggest investment banks in the UK. Although its cryptocurrency stand is similar to that of other traditional banks and is somewhat mixed, it is showing signs of crypto-friendliness and is offering some amazing features that might attract crypto investors.
Barclays allows its customers to purchase cryptocurrency with its debit and credit cards in most cases. Some of its customers report being able to move crypto-related funds freely through their Barclays account. However, it’s not unheard of for the bank to refuse deposits and withdrawals to and from some exchanges. It also cancelled its partnership with Coinbase and doesn’t support Binance operations within its framework.
Nationwide
Nationwide bank is more of a building society than a traditional bank. But its extensive network means it demands a lot of respect in the finance sector. Nationwide is largely positive towards cryptocurrency transactions. You can use your Nationwide debit card to buy crypto, make transfers to an exchange or cash out your crypto investment to your current account.
The only restriction on Nationwide is that you won’t be able to make a transfer to Binance through Nationwide because Binance has been banned by the Financial Conduct Authority (FCA).
Nationwide has systems in place to notify customers when making payments deemed suspicious or unusual for its members.
Final Remarks
Cryptocurrency has come a long way. As the perception of cryptos improves as the understanding around how they work becomes clearly understood, banks are also responding. Traditional banks have been the slowest to change their mindset, but given their slow uptake of technology which resulted in Open Banking, it’s understandable for them to drag their feet.
Thanks to the emergence of challenger banks, there’s a new push for crypto-friendly banks. Challenger banks are making a strong case for crypto users and traders, providing them with unfettered access to crypto exchanges and intuitive apps with plenty of information for crypto traders to make the best moves. It’s not a surprise that the challenger banks take the top positions when considering the most crypto-friendly banks in the UK.
