UK lawmakers probe banking restrictions on crypto firms
A cross-party UK parliamentary inquiry will examine whether banks are unfairly restricting crypto firms, a structural barrier that threatens to stifle innovation just as trading volumes show signs of recovery.
The UK’s Crypto and Digital Assets All-Party Parliamentary Group (APPG) launched an inquiry on Tuesday to investigate whether the country’s banks are systematically denying accounts to crypto businesses. The cross-party group will also scrutinize recent measures by major lenders that block crypto-related payments or impose strict transfer limits on consumers.
Lawmakers are particularly focused on the proportionality of these banking restrictions and their broader impact on competition and innovation. The APPG has opened a six-week call for written evidence from the banking, payments, fintech, and crypto sectors. It will subsequently publish a report with formal recommendations for the UK Government.
The inquiry is co-chaired by Lord Vaizey of Didcot, the former Minister for the Digital Economy, and Labour MP Gurinder Singh Josan CBE. "Over a number of years, the APPG has heard consistent reports from crypto and digital asset businesses that they face difficulties accessing bank accounts and banking services, alongside concerns about restrictions on crypto-related transactions by banks,” APPG co-chair Lord Vaizey of Didcot said.
Access and Market Growth
Securing reliable banking relationships has been a persistent obstacle for the crypto industry, a phenomenon frequently compared to the "Operation Chokepoint 2.0" debanking controversy in the United States. In the UK, the lack of access extends beyond basic accounts to associated professional services like insurance, effectively creating a structural bottleneck for digital asset firms.
This parliamentary scrutiny arrives as crypto markets show renewed momentum. Centralized exchange trading volumes rose in June for the first time in five months. Spot volumes climbed 15.3% to $1.11 trillion, while real-world asset perpetual volumes surged to a record $311 billion.
For investors and crypto executives, the inquiry represents a potential inflection point. If lawmakers determine that banks are applying disproportionate barriers, regulatory pressure could force financial institutions to open their services, removing a major operational hurdle for a rapidly growing asset class.
