Parliamentarians Query UK Banks on Crypto Account Access
Lawmakers on Parliament’s Crypto and Digital Assets All-Party Parliamentary Group (APPG) have formally requested that the chief executives of all major UK banks outline their policies regarding crypto and digital asset firms.
The inquiry, initiated by Labour MP Gurinder Singh Josan and Lord Vaizey of Didcot, a former minister for the digital economy, stems from numerous reports of crypto and digital asset businesses encountering significant hurdles in opening bank accounts within the UK. The group has also received accounts of several banks imposing restrictions on crypto-related transactions.
“Access to banking services represents one of the most substantial impediments to the growth of UK crypto and digital asset businesses, and could potentially jeopardize the success of the UK’s upcoming crypto regime,” the co-chairs stated in their letter. They further cautioned that limited banking access could influence investment decisions for firms considering the UK market.
The letter poses six specific questions to each bank: their current policy on crypto firms, the reasons for not serving such businesses if they are currently excluded, any transaction limits imposed on crypto-related activities, the underlying factors influencing these decisions, whether the forthcoming regulatory regime will alter their approach, and what measures the government or regulators could implement to assist.
Josan and Vaizey acknowledged the legal obligations banks face in combating financial crime and safeguarding consumers. However, they highlighted that many firms contend that banking decisions should be based on an individual company’s risk profile rather than the sector in which it operates. Lord Vaizey described the current situation to the Financial Times as “an unnecessary piece of friction” for businesses and a notable obstacle for entrepreneurs establishing companies in the UK.
Several prominent UK banks, including HSBC, Nationwide, NatWest, Santander, and Starling, have curtailed crypto-related payments in recent years. Research published in January by the UK Cryptoasset Business Council indicated that banks were blocking or delaying approximately 40% of attempted transfers to crypto exchanges.
According to reports, banks cite an increase in crypto-related scams and the potential for retail customers to incur substantial losses due to market volatility as reasons for these measures. HSBC, NatWest, Monzo, and Nationwide reportedly impose monthly transfer caps of between £5,000 and £10,000 to crypto exchanges, while Starling and Chase UK have implemented outright bans. It is also noted that crypto losses are not covered by the Financial Services Compensation Scheme.
HM Treasury has acknowledged the issue. Economic Secretary Lucy Rigby informed Parliament in March that under the new regulatory framework, the government “would not expect” FCA-licensed firms to face banking restrictions “simply because of the sector they belong to.”
This letter follows the APPG’s formal inquiry into banking access, which commenced on July 21 and is currently accepting written evidence until August 31 before submitting its findings to the government. The co-chairs emphasized that the letter is not intended to pre-empt the outcomes of this inquiry. The Financial Conduct Authority (FCA) finalized its rules for the sector in June, with the new regime set to become mandatory in October 2027.
The challenge of “debanking” for crypto businesses is not unique to the UK. In the United States, some firms have attributed a reduction in banking relationships to a perceived pressure campaign, which they refer to as “Operation Chokepoint 2.0.” In one instance, crypto exchange Kraken reportedly won $22 million from an auditor it claimed abandoned the company during this period.
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