UK lawmakers have launched an inquiry into banking challenges faced by crypto firms, aiming to assess barriers to financial services.
A bipartisan group of UK lawmakers has initiated an inquiry into the banking challenges faced by cryptocurrency firms. The Crypto and Digital Assets All-Party Parliamentary Group (APPG) aims to explore the difficulties these businesses encounter in securing bank accounts and the restrictions imposed by banks on crypto transactions.
Co-chaired by Lord Vaizey of Didcot and Labour MP Gurinder Singh Josan, the inquiry comes in the wake of the UK establishing a new regulatory framework for cryptocurrencies. It seeks to determine if banking barriers could hinder the country's goal of becoming a global leader in digital assets.
Today, the Crypto & Digital Assets APPG has initiated a Parliamentary Inquiry into the availability of banking services for the UK's crypto and digital assets sector.
— Crypto & Digital Assets APPG (@cryptoappg) July 21, 2026
Research indicates that UK banks have blocked or delayed around 40% of transactions aimed at crypto exchanges, with major banks like HSBC and NatWest imposing limitations on such dealings. The APPG's inquiry will assess the accessibility of banking services, including insurance, and the payment restrictions that have been enacted, evaluating whether these measures are justified and how they affect consumers and innovation.
Josan and Vaizey highlighted the importance of banking access for legitimate businesses, warning that unnecessary barriers could stifle growth and investment. They stressed that with the new regulatory regime on the horizon, it is crucial to examine whether these obstacles could undermine the UK's ambitions in the digital asset space.
Challenges in Crypto Banking
A report from the UK Cryptoasset Business Council noted that 70% of surveyed exchanges reported that banking restrictions negatively impacted their ability to invest, expand, or hire in the UK. The APPG's earlier inquiry echoed these findings, urging immediate action to address the friction that could jeopardize the UK’s position as a digital asset hub.
HM Treasury has recognized the problem, stating that regulated entities should not face exclusion due to their involvement in the crypto sector. Economic Secretary Lucy Rigby assured Parliament that under the new framework, FCA-licensed crypto firms should not expect to encounter banking service restrictions solely due to their business nature.
Additionally, the APPG plans to examine how other countries, including the U.S. and Australia, have tackled banking access for crypto firms, as similar "debanking" issues have arisen globally. The inquiry will accept written evidence until August 31 and aims to publish recommendations for the government before the UK's new crypto regime is implemented in October 2027.
