LONDON — UK lawmakers launched an inquiry into banking barriers facing cryptocurrency businesses, after reports that banks block up to 40 percent of crypto-related transfers.
The All-Party Parliamentary Group on Crypto and Digital Assets is leading the probe, addressing years of complaints from UK crypto companies. Many firms report account closures or refused banking relationships despite holding Financial Conduct Authority registrations.
Industry participants said banks maintain overly cautious risk policies driven by anti-money laundering concerns, leaving licensed digital asset firms unable to access basic financial services.
The inquiry begins weeks after the UK finalized its new crypto regulatory framework. Banking access is critical to the government's goal of positioning the country as a global digital assets hub—and the gap between FCA approval and actual banking access is the central contradiction the inquiry must resolve.
Lord Vaizey of Didcot, a former digital economy minister, co-chairs the APPG on Crypto and Digital Assets. Labour MP Gurinder Singh Josan also serves as co-chair. The group is seeking evidence from crypto firms, banks, regulators and other industry stakeholders.
The inquiry will examine why crypto firms face difficulty opening accounts and why banks curb crypto-related payments. Licensed businesses that cannot access basic banking are forced to seek services elsewhere or limit UK operations—a direct drag on the government's digital asset ambitions.
The APPG's findings will go to the UK government and financial regulators as the basis for policy recommendations. Resolving banking access for compliant firms is the clearest test of whether the UK's regulatory framework means anything in practice.
