Sunak's UK Crypto Ambitions Are Flummoxed By Reluctant Banks

Edouard Daunizeau's crypto company SavingBlocks has an office in East London's technology hub and more than 200 customers testing its services. But getting a bank account for his year-old startup has proved an almost insurmountable challenge.

Saving Blocks, which offers a suite of digital-asset portfolios for passive investors, applied with nine different banking service providers for a corporate account and was turned down by seven of them. In the past few months, the two that did take it on began peppering Daunizeau with requests for additional documentation, such as describing in detail the processes he uses to screen clients' transactions.

Daunizeau's plight illustrates a crucial challenge for UK Prime Minister Rishi Sunak's push to make the country a global crypto hub, announced a year ago. Since February, major banks including HSBC Holdings Plc and NatWest Group Plc have made headlines by further restricting the amount of money customers in Britain can move onto digital-asset exchanges, dealing a fresh blow to the battered industry.

But the issue goes beyond that, according to a dozen UK crypto executives interviewed by Bloomberg News. They spoke of a host of difficulties, ranging from having applications rejected to getting buried in paperwork. In recent weeks, access to banking has worsened to the point that companies have complained directly to Sunak's government.

"There aren't many options available most traditional banks won't offer banking services to crypto firms," said Daunizeau in an interview, declining to identify his banks. "With the recent string of events it will be even tougher. We are seeking licenses in France where we think it will be easier."