40% of Crypto Transactions Blocked Amid Rising Banking Barriers

- Institutions embrace cryptocurrency, but banking restrictions hinder retail users. - Global banks increasingly block crypto transactions, citing compliance challenges. The cryptocurrency industry is gaining traction within institutional finance. However, retail users and smaller businesses face persistent challenges accessing traditional banking services. On February 19, 2026, Cointelegraph reported that systemic issues fuel these obstacles, stemming from the difficulty of aligning blockchain activity with traditional risk and compliance protocols. A recent survey by the UK Cryptoasset Business Council found that banks restricted 40% of payments to cryptocurrency exchanges as of January 2026. Additionally, 80% of crypto exchanges reported a rise in banking-related hurdles over the past year. These barriers often result from blanket bans on crypto transactions, which banks implement regardless of the legitimacy of the exchanges involved. Even banks considered crypto-friendly impose restrictions. Revolut, for example, has reportedly frozen certain accounts linked to cryptocurrency exchanges. A Revolut spokesperson clarified that compliance with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations drives these measures. The company implements freezes only as a "last-resort." Flagged activity triggers investigations, including interactions with suspicious platforms, fraud risks, or concerns about crime or sanctions evasion. Between October 1, 2025, and early 2026, Revolut ultimately restricted or froze just 0.7% of accounts that deposited crypto assets. These frictions intensify in jurisdictions with stricter regulatory measures. In regions like China, which bans crypto on-and-off ramps, users often rely on peer-to-peer (P2P) platforms or black markets. Conversely, countries such as Nigeria have made strides in crypto adoption. In 2025, Nigeria formally recognized digital assets as securities, signaling progressive regulatory developments. In the United States, informal regulatory practices known as "Operation Chokepoint 2.0" have significantly strained cryptocurrency firms’ access to banking services. Federal regulators frequently discourage banks from working with crypto-related businesses, which amplifies challenges for retail users. However, these obstacles have received official attention since the Trump administration resumed in January 2025. The Office of the Comptroller of the Currency (OCC) confirmed that banks possess the regulatory framework to support crypto transactions in a brokerage role. Industry advocates welcomed this acknowledgment. Experts point to a lack of infrastructure within traditional banking as a core reason for these ongoing issues. Eyal Daskal, CEO of blockchain infrastructure platform Crymbo, observed that banks often block crypto-related activities, stating they do this because they lack the technological capabilities to effectively assess blockchain risks. Despite efforts by financial institutions to address these gaps, a clear disconnect persists. Cointelegraph recently reported that 60% of the top 25 U.S. banks have either launched or plan to introduce Bitcoin-related services. However, this progress has not yet created seamless integration for retail users. Friction between the crypto sector and legacy finance will likely continue until traditional banking systems prioritize robust tools to assess and manage blockchain activity.