TLDR
- UK lawmakers launched an inquiry into banking access for crypto businesses.
- The APPG will review account refusals, payment blocks, and transfer limits.
- Written evidence will be accepted from banking, fintech, payments, and crypto firms.
- The inquiry is led by Lord Ed Vaizey and Labour MP Gurinder Singh Josan.
- The final report will offer recommendations before UK crypto rules become mandatory in 2027.
UK lawmakers have launched a parliamentary inquiry into whether banks are restricting crypto businesses from accessing accounts, payments, and related financial services.
UK Lawmakers Review Crypto Banking Access
The Crypto and Digital Assets All-Party Parliamentary Group opened the inquiry on Tuesday. The cross-party group is reviewing complaints that banks have denied services to crypto firms or restricted crypto-related transfers.
The inquiry is led by Lord Ed Vaizey, a former Minister for the Digital Economy, and Labour MP Gurinder Singh Josan. The group will collect written evidence from banking, payments, fintech, insurance, and crypto firms over six weeks.
The review will examine whether crypto companies can open and keep bank accounts in the United Kingdom. It will also cover access to wider services, including insurance and payment support.
Several crypto businesses have reported long-running problems with banking access. Some firms say account refusals and payment limits have slowed hiring, investment, and expansion in the country.
Payment Limits and Account Refusals Face Scrutiny
The inquiry will also study restrictions placed on crypto-related transactions by major UK banks. These measures include payment blocks, transfer limits, and tighter checks on transactions involving crypto platforms.
The APPG wants to assess whether such measures are fair, clear, and proportionate. The review will also consider how banking restrictions affect consumers, businesses, competition, and innovation.
Lord Vaizey said the group has heard repeated concerns from crypto firms over several years. He said businesses reported difficulties accessing bank accounts and banking services, alongside concerns about crypto payment restrictions.
Vaizey and Josan said, “Access to banking services is fundamental for any legitimate business.” They added that unnecessary barriers could hinder growth, investment, and innovation.
Research published by the UK Cryptoasset Business Council in January found that banks were blocking or delaying an estimated 40% of attempted transfers to crypto exchanges. The same research said 70% of surveyed exchanges reported that banking restrictions affected investment, expansion, or hiring plans in the UK.
Inquiry Comes Before New Crypto Rules
The inquiry comes as the UK prepares for its new crypto regulatory regime. The rules are expected to become mandatory in October 2027, giving lawmakers time to review banking access before the framework takes full effect.
The APPG said the review will test whether banking barriers could weaken the government’s goal of making the UK a global digital asset hub. The group will publish a report with findings and recommendations after the evidence period closes.
The inquiry will also examine how other markets handle crypto banking access. Lawmakers plan to review approaches in the United States, Hong Kong, Australia, and the European Union.
Debanking has become a major issue for crypto firms in several countries. In the United States, some industry participants have used the term “Operation Chokepoint 2.0” to describe alleged pressure on banks to cut ties with crypto businesses.
HM Treasury has already acknowledged concerns around banking access for regulated crypto firms. Economic Secretary Lucy Rigby told Parliament in March that the government “would not expect” FCA-licensed crypto firms to face restrictions simply because they operate in crypto.
The APPG will accept written evidence until August 31. The final report is expected to set out recommendations for the government, banks, and regulators before the UK’s crypto rules become fully active.
