British lawmakers launched a parliamentary inquiry into banking restrictions on cryptocurrency businesses shortly after the UK completed its new regulatory framework for the sector. The Crypto and Digital Assets All-Party Parliamentary Group (APPG), co-chaired by former digital economy minister Lord Vaizey of Didcot and Labour lawmaker Gurinder Singh Josan, opened the 6-week investigation after banks reportedly blocked or delayed 40% of crypto transfers. The inquiry examines whether limited access to financial services could weaken the country's push to become a leading digital asset hub. Major lenders including HSBC, Nationwide, Natwest, Santander and Starling Bank have introduced restrictions on some crypto-related payments, prompting concerns from industry participants and policymakers about proportionality and impact on legitimate businesses.
APPG Opens 6-Week Evidence Collection Period on Banking Access
The parliamentary group will examine access to bank accounts, payment services and insurance for crypto businesses. Lawmakers plan to assess whether transfer limits and transaction blocks are justified by fraud and financial crime risks. The inquiry will also consider the impact of banking measures on consumers, competition, investment and innovation. "Access to banking services is fundamental for any legitimate business," Josan and Vaizey said in a joint statement. The APPG will accept written evidence for six weeks, with submissions closing on August 31.
UK Cryptoasset Business Council Reports 40% Transfer Block Rate
Research published by the UK Cryptoasset Business Council in January estimated that banks were blocking or delaying about 40% of attempted transfers to crypto exchanges. Among the exchanges surveyed, 70% said banking restrictions had affected investment, hiring or expansion plans in the United Kingdom. Crypto companies have long reported difficulties opening and retaining bank accounts, while consumers have also faced payment limits or blocked transfers when sending money to exchanges.
Economic Secretary Lucy Rigby Addresses Banking Restrictions in Parliament
HM Treasury has acknowledged the banking access issue. Economic Secretary Lucy Rigby told Parliament in March that firms licensed by the Financial Conduct Authority should not face restrictions solely because they operate in the crypto sector. The inquiry will compare the UK's approach with policies in the United States, Australia, Hong Kong and the European Union. The UK and US Transatlantic Taskforce for Markets of the Future published recommendations designed to strengthen cooperation on digital assets, stablecoins and tokenization.
Evidence Submissions Close August 31 Before October 2027 Regulatory Deadline
The APPG will publish recommendations for the government after the August 31 evidence deadline. The review comes before the UK's new crypto regime becomes mandatory in October 2027. The inquiry's findings may help determine whether regulatory clarity alone is enough to attract digital asset businesses, or whether access to traditional banking remains an obstacle. Josan and Vaizey warned that unnecessary barriers could restrict growth and undermine the government's digital asset strategy.
FAQ
What did the UK parliamentary group launch an inquiry into?
The Crypto and Digital Assets All-Party Parliamentary Group (APPG) launched a 6-week inquiry into banking restrictions on cryptocurrency businesses. The investigation examines access to bank accounts, payment services and insurance, and whether transfer limits and transaction blocks are justified by fraud and financial crime risks.
What percentage of crypto transfers do UK banks reportedly block or delay?
Research published by the UK Cryptoasset Business Council in January estimated that banks were blocking or delaying about 40% of attempted transfers to crypto exchanges. Among the exchanges surveyed, 70% said banking restrictions had affected investment, hiring or expansion plans in the United Kingdom.
When does the UK crypto regulatory regime become mandatory?
The UK's new crypto regime becomes mandatory in October 2027. The APPG inquiry will accept written evidence until August 31 and will publish recommendations for the government before this regulatory deadline.
