UK Lawmakers Demand Answers from Banks on Crypto Banking Services

UK Parliamentary Group Urges Banks to Address Crypto Service Issues

The Crypto and Digital Assets All-Party Parliamentary Group (APPG) in the UK has reached out to major banks to address their policies regarding banking services for crypto and digital asset companies.

In a letter signed by co-chairs Gurinder Singh Josan and Ed Vaizey, the group expressed concern over the difficulties faced by crypto firms in opening bank accounts and the increasing restrictions on crypto transactions imposed by banks such as HSBC, Nationwide, NatWest, Santander UK, and Starling Bank.

"We have heard of repeated instances where crypto and digital asset firms have struggled to open accounts with U.K. banks," the letter stated, highlighting a concerning trend of limited access to banking services that may hinder the growth of the sector.

The APPG noted that this lack of banking support could undermine the effectiveness of the UK's forthcoming regulatory framework for cryptocurrencies. They warned that restricted access to banking could deter potential investments in the UK and make it more challenging for licensed firms to expand.

Historically, crypto firms have faced significant hurdles in establishing banking relationships, a phenomenon that has been likened to “Operation Chokepoint 2.0,” which has affected firms and individuals across the U.S.