UK banks are imposing new restrictions on cryptocurrency transactions, impacting investors and potentially disrupting the market. This follows a wave of regulatory scrutiny from institutions like Chase UK and NatWest, who cite increased financial oversight by the FCA as a driver for these actions. 40% of UK crypto investors have reported transaction delays or blocks, leading some to seek alternative banking options. The Financial Conduct Authority’s (FCA) intensified regulations are pushing many crypto firms towards policy changes aimed at promoting access. While industry calls for clear stablecoin policies remain, the uncertainty surrounding regulations is causing a ripple effect across the UK crypto market and raising concerns about potential capital outflows. Some analysts warn that these restrictions could hinder innovation and investor confidence, with the stability of GBP-backed stablecoins being particularly vulnerable to regulatory challenges.