Cryptocurrency is a virtual currency that serves as an alternative method of payment in the forms of “tokens” or “coins” and is quite popular worldwide. People who are using crypto use it for investment or just to have a safe and secure method of saving funds. However, cryptocurrency started in 2009 and is still in the process of development.
Due to this, most banks worldwide don’t accept cryptocurrency or if they do, they will only allow you to spend your bank funds to purchase cryptocurrency. There are some crypto-friendly banks the UK has to offer you might be interested in, given the potential problems with crypto and banking. So, without further ado, let us check out the best among them!
What UK Banks Allow You to Buy Crypto?
Some banks in the UK will allow you to purchase crypto. The list is not that long, but you will definitely be able to purchase crypto in all of them without any problems or complications.
- Barclays. This bank is one of the UK’s largest investment banks. In Barclays, you can purchase cryptocurrency using both a credit and a debit card. Feel free to choose this bank if you are interested in purchasing or trading cryptocurrency.
- Royal Bank of Scotland (RBS). The Royal Bank of Scotland is one of the best banks you can rely on if you wish to purchase crypto. Naturally, you will not be able to purchase every single cryptocurrency there, but the most prominent ones are there and waiting for you to acquire them.
- Standard Chartered Bank. When it comes to this bank, you’ll be able to purchase or trade crypto without any external problems. This is the main reason why some customers in the UK prefer to use this bank. So far, there have been no complaints whatsoever.
- TSB Bank. The one thing you will need to worry about when using this bank is large transactions – the bank usually flags those. A good idea would be to split your transactions into several smaller ones.
- Nationwide. You will only be able to use a debit card to purchase crypto in this bank, so if you are using a credit card, try another bank that will allow it. Some customers have complained about Coinbase SEPA deposits, but not for other cryptocurrencies.
Pic 1: https://pixabay.com/photos/money-coin-investment-business-2724241/
These five banks will definitely help you out if you are interested in the UK banks that allow crypto. We highly recommend checking at least some of them.
Things You Can Expect From a Crypto-Friendly Bank
Some of the best UK banks for crypto will allow you several things. For instance:
- Use their credit or debit cards in order to purchase crypto. With a credit/debit card belonging to the banks we have listed here, you’ll be able to purchase cryptocurrency without any issues at all. Remember that you will still need to have a cryptocurrency wallet to acquire them.
- Do cryptocurrency wire transfers. You will also be able to send/receive cryptocurrencies from a bank that is crypto-friendly. This is something you should check with the bank beforehand, however.
- Cash-out cryptocurrency investments. Since most people use cryptocurrencies for investments, at some point, they would want to cash out their investments. Crypto-friendly banks will allow you just that – all you need to do is go to the bank and ask for a cash-out.
These three options are the main reasons why some people would prefer a crypto-friendly bank over a bank that isn’t. At some point, they might start using crypto or investing, and having an account in one of them could definitely help them out.
Should You Trust Crypto-friendly Banks?
Crypto-friendly banks function following the same principle as regular banks. There is no reason why you shouldn’t be trusting a crypto-friendly bank. While it is true that cryptocurrencies have an anonymous nature to them, they can still be tracked and traced, albeit slightly more difficult than regular currency.
What is important to know is that the UK banks that allow crypto are, in terms of what they can offer, better than regular banks. This is especially true for people who might get into cryptocurrency or investments some time in the future.
Crypto-friendly banks are the future of banking. More and more people are into crypto and investing in crypto with each passing day. Banks, naturally, need to adapt to the change and allow their customers to trade in cryptocurrencies as well. While some people are still skeptical about crypto-friendly banks, they function just the same as traditional banks – only with more options.
How Does Cryptocurrency Function?
It might be a good idea to learn more about how cryptocurrency function before you find out which banks are the best for crypto – it will help you save both time and effort. What makes cryptocurrency different than regular currency is that it is completely virtual – you cannot physically use it in any way or form.
What you can do, however, is trade safely online since it is encrypted and no one can abuse or double-spend crypto. It also allows you to trade without a third party, so it is a much cheaper option for most users as well. It is a compelling method of payment, but paying online with it is not its only function.
Most people prefer to store cryptocurrency in their crypto wallets since the value of “coins” or “tokens” changes on a daily basis. This allows for some investment opportunities and for this reason, crypto is often used in one of the following manners:
- Mining and saving. It is possible to “mine” cryptocurrencies such as Bitcoin. There are mining rates and they depend on the value of the cryptocurrency you are mining. The more you mine, the more crypto you will have. Since its value changes depending on the global crypto market, you might earn a fortune from it.
- Buying and saving. You can also buy crypto at a certain price and wait for it to skyrocket in value and resell it for profit. A lot of users are doing this – it is faster than mining, but there is more risk involved. Those who are patient and fortunate enough can earn a fortune.
Knowing and understanding how cryptocurrency works can help you start investing on your own or getting into crypto in the right possible way. It is one of the more popular ways of earning a profit nowadays.
Is Crypto Legal in the UK?
First and foremost, cryptocurrency is absolutely legal anywhere except in nine countries – Tunisia, Qatar, Nepal, Egypt, Morocco, Iraq, Algeria, Bangladesh, and, surprisingly, China. It is a relatively new concept and laws in certain countries are still not updated in a way to prohibit or support crypto. This being said, it is completely legal in the UK.
Crypto in the UK is becoming more and more popular. In 2018, for instance, it was estimated that around 1.5 million people have had some form of crypto in their possession. This number grew by an astounding 8.3 million people in 2021, making the approximation around 9.8 million. Crypto is on the rise in the UK and learning more about it is a really good idea.
Another thing you should know is that FCA (Financial Conduct Authority) is regulating cryptocurrency in the UK solely for money-laundering prevention. For this reason, all exchanges in the UK need to be registered by the FCA before they can go through. It is just another regulation and you shouldn’t have any problems with it.
What to Do With Crypto in the UK?
Since cryptocurrency is still not as popular in the UK, your options are limited when it comes to using it. Generally, major street shops will not accept cryptocurrencies as a form of payment. There are some exceptions to this – Torguars will allow you to purchase their goods/products/services with cryptocurrency as a form of payment.
When it comes to using Crypto in the UK, some stores will allow you to use Bitcoin since it is the most known and the most popular cryptocurrency. Diadem, a jewelry store, and Bitnewt will accept payments in Bitcoin. As we have mentioned earlier, there are other ways of using cryptocurrency other than purchasing offline products and services with it.
When it comes to crypto-friendly banks, there are some banks in the UK that will definitely be a good choice for you, regardless if you are new in the crypto world or not. Banks such as Royal Bank of Scotland, Standard Chartered Bank, TSB Bank, Nationwide, Barclays, Solaris Bank, and The Co-operative Bank will let you purchase crypto using either credit or debit cards. This is a good thing to know, especially if you are planning on starting your crypto journey. Learn as much as you can about it and you’ll see that investing in crypto is a good idea!