Moreover, the UK's largest banks are increasing the pressure on crypto investors. For example, HSBC announced last month that customers could no longer use their credit cards to purchase cryptocurrencies. The relationship between crypto and regulated financial institutions has always been tenuous. Now, UK's regulatory environment in relation to cryptocurrency is becoming increasingly challenging, leading many crypto companies to search for new partners overseas.
With the failure of US banks that were once popular routes for crypto companies to convert digital tokens to hard currency, the search for new banking partners willing to accept crypto business has become even more urgent. Meanwhile, the U.K. government is said to be planning to create a new task force, which will bring together the Bank of England and the Treasury to coordinate the UK's approach to central bank digital currencies.