UK lawmakers launch cross-party inquiry into banks denying accounts to crypto firms. The APPG will examine restrictions and consumer impact over a six-week call for evidence.
Alpha Score of 58 reflects moderate overall profile with strong momentum, poor value, moderate quality, strong sentiment.
UK politicians want to know how far the country's banks have cut off cryptocurrency firms by refusing them accounts and restricting crypto-related payments. A cross-party inquiry kicked off Tuesday.
The Crypto and Digital Assets All-Party Parliamentary Group (APPG) is chaired by former UK Digital Economy Minister Lord Vaizey of Didcot and Labour MP Gurinder Singh Josan CBE, according to a press release.
Difficulties around banking relationships have plagued the crypto space since its early days. In the US, a systematic debanking of firms and individuals has been described as "Operation Chokepoint 2.0." Several major UK banks have also introduced restrictions on crypto payments, the APPG said.
The inquiry will focus on the lack of bank accounts for crypto businesses, including associated professional services such as insurance. The APPG also plans to examine restrictions on crypto-related transactions, including blocked payments to certain crypto firms and transfer limits. The group wants to understand how these restrictions are applied, whether they are proportionate, and what impact they have on consumers, businesses, innovation and competition.
"Over a number of years, the APPG has heard consistent reports from crypto and digital asset businesses that they face difficulties accessing bank accounts and banking services, alongside concerns about restrictions on crypto-related transactions by banks," Lord Vaizey said.
The APPG is inviting written evidence from the banking, payments, fintech and crypto sectors. The six-week call for evidence will be followed by a report setting out findings and recommendations to the government.
Meanwhile, crypto market analysis shows that despite the banking headwinds, trading volumes are climbing. Centralized exchange spot volumes rose 15.3% to $1.11 trillion in June, the first increase in five months. Real-world asset perpetual volumes hit a record $311 billion.
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