Can you imagine? Banks claim to be blocking people and businesses because of the FTX collapse. How many banks have they stopped because of the ugly past of many UK banks that went insolvent?
The problem of one establishment out of many should never be a yardstick in judging others. For me, these banks are anti-crypto and their actions are high level of hypocrisy.
Btw, In general, if we look at banks as one of the traditional financial institutions, there are times when we see cryptocurrencies as one of the formidable opponents of their business model. they see this from a competitive business standpoint. I'm sure they will maintain their dominance in the financial sector. Yes. we are the roosters, not the others. Apart from that, if we role go back to the past, Bank itself has also faced a collapse with various financial scandals. So, from your question above Why are UK banks blocking transfers to and from crypto exchanges In 2023?
One of the common classic reasons is the application of risk management and customer protection that they have provided for their customers. That means, indirectly they have a responsibility to manage risk and protect the assets of their customers. This became a strong additional reason as justification for their actions from the collapse of FTX exchange as a crypto exchange at that time.