UK Lawmakers Probe 40% Crypto Transfer Blocks as Banking Scrutiny Widens

A cross-party group of U.K. lawmakers has opened an inquiry into banking restrictions affecting crypto companies and their customers. The review will assess whether account closures, payment blocks and transfer limits threaten Britain’s digital asset ambitions.

British lawmakers are investigating whether banks are placing excessive restrictions on cryptocurrency businesses, raising concerns that limited access to financial services could weaken the country’s push to become a leading digital asset hub.

Crypto companies have long reported difficulties opening and retaining bank accounts. Consumers have also faced payment limits or blocked transfers when sending money to exchanges.

Major lenders, including HSBC, Nationwide, Natwest, Santander and Starling Bank, have introduced restrictions on some crypto-related payments.

The parliamentary group will examine access to bank accounts, payment services and insurance. It will also consider whether transfer limits and transaction blocks are justified by fraud and financial crime risks.

Lawmakers plan to assess the impact of those measures on consumers, competition, investment and innovation.

“Access to banking services is fundamental for any legitimate business,” Josan and Vaizey said in a joint statement. They warned that unnecessary barriers could restrict growth and undermine the government’s digital asset strategy.

HM Treasury has acknowledged the issue. Economic Secretary Lucy Rigby told Parliament in March that firms licensed by the Financial Conduct Authority should not face restrictions solely because they operate in the crypto sector.

The inquiry will compare the U.K.’s approach with policies in the United States, Australia, Hong Kong and the European Union.