UK Parliament Launches Inquiry into Crypto Banking Access
London, UK – The UK Parliament’s Crypto and Digital Assets All-Party Parliamentary Group (APPG) has initiated a formal investigation into the persistent refusal by banks to open accounts and process payments for cryptocurrency businesses. The inquiry seeks written evidence until August 31, with the group aiming to release recommendations before the Financial Conduct Authority’s (FCA) mandatory crypto regime takes effect in October 2027. This move will test the viability of the UK’s ambition to become a global digital asset hub amidst significant banking restrictions.
Scope of the Inquiry
The inquiry, announced Tuesday by co-chairs Lord Vaizey of Didcot and Labour MP Gurinder Singh Josan CBE, will examine the difficulties crypto firms encounter in opening and maintaining business accounts, as well as issues related to transfer limits, payment blocks, and the proportionality of banking restrictions. It will also draw comparisons with the approaches taken by the United States, Hong Kong, Australia, and the European Union.
The APPG articulated its concerns, stating that crypto and digital asset firms have consistently reported challenges in accessing UK banking services. The group emphasized that banking access is crucial for legitimate businesses, and that unnecessary barriers risk hindering investment, innovation, and long-term growth.
Scale of the Problem
The issue’s magnitude is considerable. Research published in January 2026 by the UK Cryptoasset Business Council revealed that approximately 40% of payments directed to crypto exchanges were blocked or delayed by UK banks. One platform reported nearly £1 billion in rejected transactions during 2025. Furthermore, 80% of exchanges experienced an increase in customer friction, and 70% described banking conditions as more hostile than the previous year.
Government Stance vs.
Reality
These findings appear to contradict the government’s stated position. In March 2026, HM Treasury Economic Secretary Lucy Rigby informed Parliament that licensed crypto firms should not face restrictions solely due to their sector of operation. Consequently, the inquiry will investigate why FCA-registered businesses continue to encounter banking hurdles despite regulatory advancements.
The inquiry also follows the finalization of the UK’s FCA crypto framework. The authorization window is set to open in September 2026, with full compliance becoming mandatory on October 25, 2027. If licensed firms continue to struggle with securing banking services, confidence in the new regulatory framework could be undermined.
International Comparisons
Comparisons with overseas markets are also being drawn. In the United States, crypto companies have likened banking restrictions to “Operation Chokepoint 2.0.” Kraken recently secured a $22 million settlement from an auditor it claimed abandoned the exchange during that period. In Australia, Coinbase has also voiced criticism against banks regarding restrictions on crypto-related services. The APPG will assess how other jurisdictions have managed similar challenges.
Political Context and Industry Expectations
The inquiry arrives amidst a period of political transition, with Andy Burnham having recently become Prime Minister and John Healey appointed Chancellor of the Exchequer. Legal experts suggest that global financial firms will be closely observing whether the new government establishes a stable regulatory environment for digital assets and financial services.
Written submissions will be accepted from July 21 through August 31, encompassing the banking, payments, fintech, and crypto sectors. The APPG plans to publish its recommendations before the October 2027 deadline. Industry participants are expected to advocate for case-by-case risk assessments rather than blanket restrictions on FCA-registered crypto firms.
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