UK lawmakers ask major banks whether FCA authorization will change how they assess crypto firms. A new inquiry gathers evidence through August 31 before publishing recommendations.
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Two UK lawmakers are pushing major banks to explain whether authorized crypto firms will get fairer treatment once the Financial Conduct Authority’s new digital asset regime takes effect. Gurinder Singh Josan and Lord Vaizey, co-chairs of the Crypto and Digital Assets All-Party Parliamentary Group, wrote to bank executives seeking details on current policies, account access and transaction restrictions. The pair warned that difficulty securing ordinary banking services risks becoming one of the biggest barriers to growth for Britain’s crypto industry.
The letter asks lenders whether FCA authorization will materially change how they assess crypto businesses. For years many banks have applied blanket sector-wide restrictions, treating all crypto firms as high risk regardless of individual compliance. Banks were also asked what legal, compliance, commercial and risk considerations shape their decisions, and whether they restrict crypto-related transactions for business or retail customers. Josan and Vaizey acknowledged financial-crime and consumer-protection obligations. They said industry arguments suggest decisions should reflect each company's individual risk profile instead of treating every digital asset business identically.
The timing is tied to the FCA’s broader crypto framework, finalized in June. Firms conducting regulated crypto activities will need authorization under the Financial Services and Markets Act. Applications open September 30 and run through February 28, 2027. The regime is expected to take effect October 25, 2027. That creates a regulatory milestone banks can no longer easily ignore when assessing authorized crypto companies, the lawmakers said. The government has also stated that licensed firms should not face restrictions simply because they operate in crypto.
The parliamentary letter forms part of a wider inquiry launched July 21 into banking access for the crypto sector. The APPG is gathering evidence from banks, crypto companies and other stakeholders through August 31 before presenting findings and recommendations to the UK government. The inquiry could expose whether de-risking practices are undermining the country's broader effort to build a regulated digital asset market. Exchanges, custodians, payment firms, wallet providers, tokenization businesses and stablecoin issuers are all potentially affected. Banking policy is becoming a foundational issue, not a narrow dispute over individual account decisions.
Coinbase launched a new UK derivatives suite for professional investors this week. Robinhood secured FCA registration on July 31. The FCA’s Stablecoin Sprint found cross-border payments are the clearest near-term use case. But the APPG letter signals that regulatory clarity alone may not solve the banking bottleneck. The evidence-gathering period closes at the end of August. The group will then publish recommendations.
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