UK Lawmakers Probe 40% Crypto Transfer Blocks

A cross-party group of British lawmakers has opened an inquiry into banking restrictions on cryptocurrency companies and their customers. The review will assess whether account closures, payment blocks, and transfer limits are undermining the country's push to become a digital asset hub.

The Crypto and Digital Assets All-Party Parliamentary Group (APPG) launched the inquiry after the U.K. completed its new regulatory framework for the sector. The group is co-chaired by former digital economy minister Lord Vaizey of Didcot and Labour lawmaker Gurinder Singh Josan.

Crypto companies have long reported difficulty opening and keeping bank accounts. Consumers have also faced payment limits or blocked transfers when sending money to exchanges. Major lenders including HSBC, Nationwide, Natwest, Santander, and Starling Bank have introduced restrictions on some crypto-related payments.

The parliamentary group will examine access to bank accounts, payment services, and insurance. It will also consider whether transfer limits and transaction blocks are justified by fraud and financial crime risks. Lawmakers plan to assess the impact on consumers, competition, investment, and innovation.

“Access to banking services is fundamental for any legitimate business,” Josan and Vaizey said in a joint statement. They warned that unnecessary barriers could restrict growth and undermine the government’s digital asset strategy.