UK MP Group Investigates Bank Barriers for Crypto Firms

The APPG will compare British practices with approaches in the United States, Hong Kong, Australia, and the European Union. It will also consider whether banks distinguish between registered exchanges with governance and fraud controls and unlicensed offshore platforms. "The central puzzle is whether blanket restrictions can still be called risk-based when they ignore material differences between businesses," Lord Vaizey, co-chair of the APPG, said in a statement. Banks do carry obligations involving fraud and money laundering. Reimbursement rules for authorized push-payment fraud can expose providers to claims of up to £85,000, potentially encouraging transaction blocks instead of individualized assessment in many individual cases.

Timing gives the investigation additional weight. The Financial Conduct Authority is due to begin accepting authorization applications from crypto firms on September 30. The wider regulatory regime is scheduled to take effect on October 25, 2027. A license could become hollow if approved businesses still cannot maintain reliable access to payments and bank accounts, Lord Vaizey said. Co-chaired by Lord Vaizey and Labour MP Gurinder Singh Josan, the APPG must now determine whether current controls protect consumers proportionately or undermine competition, innovation, investment, and the credibility of Britain's crypto ambitions.

The group is accepting written submissions until the end of August.