UK Financial Institutions Cite Fraud, Volatility as Reasons for Blocking Crypto Access

UK bank executives have blocked customer access to crypto assets due to concerns over fraud and volatility, according to testimony given to the Treasury Select Committee.

NatWest CEO Alison Rose stated that the bank has taken a “pretty hard line” on crypto, blocking both retail and wealth customers from transferring into crypto due to the volatility and stability of the platforms.

Rose also noted that fraud originating from social media and technology platforms was a significant concern.

Other bank executives, such as Lloyds CEO Charlie Nunn, expressed support for new regulations in the sector, but expressed skepticism about cryptocurrencies themselves.

In regards to central bank digital currencies, some bank executives saw benefits, such as modernizing payment infrastructure, but others raised concerns about creating a two-tier payment system and the risk of a bank run.