UK Parliament Inquiry Targets Bank Limits on Crypto Businesses

UK lawmakers have opened a cross-party inquiry into whether banks unfairly restrict cryptocurrency firms from accessing banking services and limit crypto-related payments. The Crypto and Digital Assets All-Party Parliamentary Group (APPG) said Tuesday it will collect written submissions over six weeks from banks, payment companies, fintechs, crypto businesses, and other stakeholders. The group plans to publish a report with recommendations for the government.

The inquiry is chaired by Lord Vaizey of Didcot, a former UK digital economy minister, and Labour MP Gurinder Singh Josan. Lord Vaizey said the APPG has received consistent reports over several years from crypto businesses describing difficulties opening and maintaining bank accounts, as well as restrictions on crypto-related transactions. The group wants to understand whether current banking practices are proportionate and whether they have unintended consequences for consumers and businesses.

The UK is building its regulatory framework for digital assets. Earlier this month, Chancellor Rachel Reeves announced plans to issue the first Digital Gilt Instrument by early 2027, a sovereign bond on distributed ledger infrastructure through HSBC’s Orion platform. The government also issued a joint UK-US policy statement on stablecoins and tokenized finance through the Transatlantic Taskforce for Markets of the Future, agreeing on shared principles including one-to-one backing and reserve segregation.

The APPG said its inquiry will examine reports that crypto firms have been denied banking services or experienced account closures, and that professional service providers such as insurers have also faced difficulties. Lawmakers will also investigate restrictions on crypto-related payments by several major UK banks, including blocking transfers to certain platforms and setting payment limits.