New banks in the United Kingdom are refusing to open accounts for customers dealing in cryptocurrency. Financial institutions are no longer comfortable dealing with the volatile nature of digital currencies.
High-street banks have denied requests by cryptocurrency traders to open accounts in recent months and also requested that other existing customers close accounts related to cryptocurrency trading. Banks are concerned about the high level of risk associated with this type of currency.
Cryptocurrency is known for its volatile, unpredictable nature, and this has caused lenders to become wary. A majority of major banks have refused to accept clients dealing with cryptocurrency and put a stop to all transactions related to the virtual asset.
The legal status of cryptocurrency is currently up in the air, particularly with the European Union’s Crypto Assets Regulation coming into force in 2021. Banks are keen not to get involved with anything that might not be necessary for them to involve themselves.