UK parliamentary group probes banking barriers for crypto firms

A UK parliamentary group opened an inquiry Monday into whether crypto firms and consumers face unfair banking restrictions. The Crypto and Digital Assets All-Party Parliamentary Group said it will examine how the restrictions affect investment and economic growth. It will also assess whether the measures are proportionate.

Written submissions from banks and crypto firms are due by Aug. 31. The group plans to publish its findings and recommendations after that.

A January survey by the UK Cryptoasset Business Council found that 10 crypto exchanges said banks blocked or delayed 40% of transactions to crypto platforms. In the same survey, 70% of respondents said the restrictions reduced their willingness to invest or expand in the UK.

The inquiry coincides with the Financial Conduct Authority preparing to begin accepting authorization applications from crypto firms on Sept. 30.