UK banks defend stance on bitcoins

Some of the UK's big banks have defended their stance towards Bitcoin despite investors claiming the banking sector is "shunning the whole cryptocurrency" industry. People investing in Bitcoin today told how they are being pushed into making expensive foreign money transfers or even being refused bank accounts because of their involvement with cryptocurrencies, which operate solely in cyberspace.

Bitcoin, the world's most well-known digital currency, has shot up in value over the past year, although its value began to plunge in mid-December. One London-based Bitcoin investor, who made £80,000 after investing less than £3,000 four years earlier, today told the Standard she only uses foreign bank accounts for Bitcoin transfers while her friends had even relocated because of the obstacles.

Marc Warne founded website Bittylicious which allows people to buy and sell Bitcoins, with profits deposited straight into UK bank accounts.

Mr Warne told the Standard that companies which are involved in cryptocurrencies, like his, are unable to get a UK bank account.

"No banks will give us accounts," he said. "To this day, I still can't get a UK bank account which is a pain in the neck. "A whole sector has been shunned by the five banks. If you do anything to do with crypto, like mak- ing software or working on Bitcoin ATMs, they won't have anything to do with you.

"They claim it's to do with a risk. But there's no real reason." One investor made a mammoth £80k through Bitcoin from an investment of under £3,000 four years earlier. Banks in Europe are more adapted to using Bitcoin, Mr Warne added, but he said it's "not going to be good" for investors in the UK after Brexit.

UK banks may have traditionally steered clear of cryptocurrencies over fears to links with crime including money laundering and fraud. Barclays said it does accept transactions from cryptocurrency exchanges while HSBC said it is monitoring the development of virtual and digital currencies.