According to recent news, SavingBlocks, a crypto fintech that operates on the DeFi platform, faced rejection from seven banking service providers in London when applying for a corporate account. This development poses a significant challenge to the UK’s ambition to become a leading global cryptocurrency hub.

According to reports, SavingBlocks, a cryptocurrency company with over 200 clients, has approached nine banking service providers in an attempt to open a bank account. However, the company was rejected by seven of them.

Crypto account rejections

The two banks that initially responded favorably to the proposal have been causing problems for Edouard Daunizeau, the company’s CEO, for the past few months. They have been requesting additional documentation regarding the client transaction processes.

Daunizea stated that finding service providers is challenging, and few options are available. He mentioned that most traditional banks refuse to provide banking services to crypto firms, and with the recent series of events, it will be even more difficult. Daunizea reported they are seeking licenses in France, believing it will be easier.

It is worth noting that Rishi Sunak, the current Prime Minister of the UK, had declared during his tenure as the Finance Minister under former Prime Minister Boris Johnson that he aimed to establish the UK as a crypto hub. He stated that the measures they have laid out would aid in guaranteeing that firms could invest, innovate, and scale up within the country.

Banks hinder crypto growth

Since February, the conditions in the country have been unfavorable for realizing the Prime Minister’s aspirations. For example, certain banks have restricted customers from transferring funds to crypto exchanges.

Moreover, according to UK crypto executives, the crypto industry has faced numerous obstacles. They stated that banking services have been unfriendly towards them, and some banks have even complained to Sunak’s government about crypto firms.