UK crypto industry advocates have submitted evidence showing that approximately 40% of crypto-related transactions are being blocked or restricted by UK high street banks, framing the practice as banks effectively choking off mainstream adoption. Industry groups are lobbying the Financial Conduct Authority and Treasury for intervention, but regulatory relief is not imminent.
For Armada's crypto repo desk, this is a settlement risk issue. If counterparties — particularly hedge funds or family offices with UK banking relationships — cannot reliably move fiat in connection with repo margin calls, haircut adjustments, or collateral unwinds, operational disruptions become a real exposure. Armada should map which active or prospective counterparties rely on UK bank rails for settlement.