There are various guarantees and payment codes of conduct that UK banks have signed up to. The intent of these is to give some protection if you've made a payment to a scammer.
What I presume is happening is that some banks are seeing a significant increase in applications for that protection from crypto transactions. Or are expecting to see such.
It doesn't apply when you withdraw cash as you have no recourse to protection from the bank if you subsequently lose that money. And you might be restricted from using you card at a casino if your bank has seen significant claims from said casino.
One can, of course, argue whether or not such protections should exist. As in, run the retail banking system on a caveat emptor basis. But that's not how it works in the UK and, whilst it doesn't, it's not unreasonable for the bank's to limit their liability.
What I presume is happening is that some banks are seeing a significant increase in applications for that protection from crypto transactions. Or are expecting to see such.
It doesn't apply when you withdraw cash as you have no recourse to protection from the bank if you subsequently lose that money. And you might be restricted from using you card at a casino if your bank has seen significant claims from said casino.
One can, of course, argue whether or not such protections should exist. As in, run the retail banking system on a caveat emptor basis. But that's not how it works in the UK and, whilst it doesn't, it's not unreasonable for the bank's to limit their liability.