A cross-party group of UK lawmakers has launched a parliamentary inquiry to investigate the significant challenges cryptocurrency firms face in accessing banking services. The investigation, led by the Crypto and Digital Assets All-Party Parliamentary Group (APPG), aims to understand why banks restrict crypto-related payments and why firms struggle to open and maintain accounts. This move comes as the UK finalizes its new regulatory framework for digital assets, raising questions about whether existing banking barriers could impede the nation’s ambition to become a global leader in the sector.
The inquiry, initiated on July 21, 2026, will collect written evidence until August 31. A report is expected before October 2027, coinciding with the mandatory implementation of the UK’s new crypto regime. Co-chaired by Lord Vaizey of Didcot and Labour MP Gurinder Singh Josan, the APPG seeks to assess if these banking hurdles are proportionate and how they affect consumers, competition, and innovation.
Industry Faces Persistent Banking Hurdles
UK crypto businesses have reported persistent difficulties with banking for years. Research from January indicated that banks were blocking or delaying approximately 40% of attempted transfers to crypto exchanges. Furthermore, a survey found that 70% of crypto exchanges reported that these restrictions were negatively impacting their investment, expansion, or hiring efforts within the UK. Several major UK banks, including HSBC, Nationwide, NatWest, Santander, and Starling Bank, have reportedly restricted crypto-related payments.
The APPG’s inquiry will examine various aspects of banking access, including account services, payment blocks, transfer limits, and insurance availability. This investigation follows a similar inquiry by the APPG in 2023, which also highlighted friction in the crypto sector and called for urgent action.
Government Acknowledges Issues
HM Treasury has acknowledged the problem. Economic Secretary Lucy Rigby stated in March that FCA-licensed crypto firms should not face banking restrictions solely due to their sector. The government’s position, as outlined in the upcoming regulatory framework, is that regulated firms should not be shut out of banking services simply for operating in the crypto space.
International Context
Internationally, similar banking access issues have been reported. In the United States, crypto firms have attributed banking difficulties to a pressure campaign they refer to as ‘Operation Chokepoint 2.0.’ Kraken, for instance, recently won $22 million from an auditor it claimed abandoned it during this period. In Australia, Coinbase has accused banks of imposing what it describes as an ‘unlawful’ regulatory ban on crypto.
The APPG will consider these international approaches from jurisdictions such as the United States, Hong Kong, Australia, and the European Union as part of its investigation. The outcome of this inquiry remains uncertain, but it is expected to shed light on the challenges facing the UK’s burgeoning digital asset industry and its potential impact on the country’s regulatory goals.
Why This Matters
The materials describe a narrow update: A cross-party group of UK lawmakers has initiated a parliamentary inquiry to examine why cryptocurrency firms face difficulties in opening bank accounts and why banks restrict crypto-related payments. Whether banking barriers could undermine the Government’s goal of making the UK a global leader in digital assets.
Broader Context
Source materials place the factual news in this context: The APPG is Westminster’s leading cross-party group on crypto and digital assets.
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