Crypto firms in the UK are facing difficulties obtaining banking services as banks reject their applications, freeze their accounts, and demand additional paperwork, according to sources cited by Bloomberg. The departure of US-based lenders Silvergate Capital, Signature Bank, and Silicon Valley Banks has exacerbated the situation. Despite Prime Minister Rishi Sunak's efforts to establish the UK as a digital asset hub, local banks are hindering this objective. Some companies have lodged complaints with the government, while others have been rejected by the majority of the lenders they approached. HSBC Holdings and NatWest Group have also restricted the amount of money clients can move into crypto exchanges.

The UK government has dropped plans for a non-fungible token (NFT) issued by the Royal Mint due to concerns over demand, according to Finance Minister Jeremy Hunt. The Royal Mint was initially tasked with creating the NFT in April 2022, but the government announced on Monday that it had decided to drop the project. Hunt cited the changing landscape of the NFT space and the government's uncertainty over demand as the reasons for the decision. Despite this, the UK government remains committed to its crypto hub ambitions and has not been deterred by the recent downturn in the crypto market.

The UK's Treasury has canceled plans to launch a non-fungible token (NFT) as part of a broader bid to make the UK a more appealing hub for crypto innovation. The move, initially proposed by then Chancellor of the Exchequer Rishi Sunak, was announced in the spring of 2022 by the UK's Royal Mint. The British government was also making moves to bring stablecoins within a regulatory framework to be used as a recognized form of payment at the time. In a written response to questions on Monday, Treasury minister Andrew Griffith said the Royal Mint is "not proceeding with the launch of a Non-Fungible Token at this time but will keep this proposal under review."

U.K. banks should be given a “whitelist” of registered crypto firms to avoid the sector being cut off from the financial system, lobby group CryptoUK has said in letters sent to regulators Tuesday.

Silicon Valley Bank's parent company SVB Financial Group (SIVB) has filed for Chapter 11 bankruptcy protection.

As Great Britain is gradually moving to its own comprehensive crypto framework, the Treasury introduces a separate category for crypto assets into the tax return forms. The particular line should appear in the tax forms in 2024-25. 

HSBC Holdings Plc (HSBA) said that its U.K ring-fenced subsidiary, HSBC U.K. Bank, is acquiring Silicon Valley Bank U.K. (SVB U.K.) for British pound 1, as per a filing.

Strategic acquisition to strengthen banking franchise of HSBC in UK.

The U.K Financial Conduct Authority has expanded its enforcement action against crypto ATMs, taking the investigation to east London after working with West Yorkshire Police to tackle crypto ATM operators in the northern city of Leeds.

On March 3, a crypto hedge fund called Digital Asset Capital Management (DACM) with assets worth over $400 million announced they are looking for a new banking partner in Switzerland post Silvergate chaos.