U.K. lawmakers are asking major banks whether the country’s incoming crypto framework will change how they treat regulated digital asset firms. The move forms part of a wider parliamentary inquiry into whether banking restrictions are holding back the sector.
Key Takeaways
APPG pressed U.K. banks on Aug. 11 to explain crypto account limits before new rules.FCA-authorized firms could gain fairer access as lawmakers probe banking barriers through Aug. 31.APPG will use Aug. 31 evidence to shape recommendations for the U.K.’s incoming crypto regime.U.K. lawmakers are stepping up scrutiny of banks’ treatment of crypto companies as the United Kingdom prepares to bring more of the digital asset industry under formal regulation.
Gurinder Singh Josan MP and Lord Vaizey of Didcot, co-chairs of the Crypto and Digital Assets All-Party Parliamentary Group, wrote to the chief executives of major UK banks and banking service providers on Aug. 11.
“Access to banking services could be one of the single biggest barriers to growth for U.K. crypto and digital asset businesses, and could potentially undermine the success of the U.K.’s forthcoming crypto regime,” the lawmakers wrote.
Banks Asked to Explain Risk PoliciesThe APPG said it has repeatedly heard from crypto businesses that struggle to open or maintain bank accounts. It has also received reports of payment limits and restrictions affecting crypto-related transactions.
Lawmakers acknowledged that banks must meet anti-money laundering, consumer protection and other regulatory obligations. However, they questioned whether firms should continue to face broad restrictions once they become authorized under the new framework.
The letter argues that banking decisions should increasingly reflect “a firm’s individual risk profile, rather than simply the sector in which it operates.”
Banks have also been asked to identify the regulatory, legal, compliance, commercial and risk factors that shape their approach.
Inquiry Could Shape UK Crypto PolicyThe group is examining the scale of the problem, its effect on investment and growth, and whether further government or regulatory action is required. Banks are being asked what policymakers could do to make it easier for legitimate crypto businesses to access financial services.
The inquiry covers a wide range of companies, including exchanges, custodians, payment firms, wallet providers, tokenization businesses and stablecoin issuers.
The timing is significant. The U.K. is trying to attract digital asset businesses while imposing clearer regulatory standards. If licensed firms still struggle to obtain basic banking services, lawmakers fear the new regime could fall short of its broader competitiveness goals.
