UK Lawmakers Press Bank CEOs on Crypto Account Refusals

The co-chairs of Parliament's Crypto and Digital Assets All-Party Parliamentary Group have written to the chief executives of every major UK bank, asking them to explain how they treat crypto and digital asset firms.

The letter, sent Tuesday by Labour MP Gurinder Singh Josan and Lord Vaizey of Didcot, a former digital economy minister, says the group has heard "repeated instances where crypto and digital asset firms have struggled to open accounts with UK banks," alongside reports that several banks have restricted crypto-related payments.

"Access to banking services could be one of the single biggest barriers to growth for UK crypto and digital asset businesses, and could potentially undermine the success of the UK's forthcoming crypto regime," the co-chairs wrote. They added that limited access could sway the decisions of firms weighing whether to invest in the country.

The letter puts six questions to each bank: what its policy is, whether it currently serves crypto firms and why not if it does not, what limits it applies to crypto-related transactions, what factors drive that approach, whether the incoming regime will change it, and what the Government or regulators could do to help.

Josan and Vaizey said they accept that banks have legal obligations to prevent financial crime and protect consumers. But they noted that many firms argue decisions should reflect a company's individual risk profile more than the sector it sits in. Vaizey told the Financial Times that the difficulties amounted to "an unnecessary piece of friction" in running a business. He counted it among the obstacles facing anyone setting up a firm in the UK.