UK Parliament Launches Inquiry Into Bank Restrictions on Crypto Businesses

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The UK Parliament has launched a cross-party inquiry into whether cryptocurrency businesses are facing unnecessary barriers to accessing banking services, amid growing concerns that some firms have struggled to open or maintain bank accounts despite operating within existing regulatory requirements.

The inquiry is being conducted by the Crypto and Digital Assets All-Party Parliamentary Group (APPG), a cross-party group of MPs and members of the House of Lords. The review will examine whether banks’ treatment of crypto businesses reflects proportionate risk management or whether current practices are limiting competition, innovation and investment across the UK’s digital asset sector.

Chaired by former Digital Economy Minister Lord Ed Vaizey of Didcot and Labour MP Gurinder Singh Josan, the APPG has opened a six-week call for evidence from banks, payment providers, fintech companies, crypto firms, regulators and trade associations. Following the consultation, the group plans to publish a report containing findings and recommendations for the UK government.

Inquiry to examine banking restrictions across the sector

Rather than focusing solely on business account access, lawmakers said the review will assess a broader range of banking-related issues affecting digital asset companies.

Among the areas under examination are:

• Refusals to open business bank accounts.
• Closure of existing corporate banking relationships.
• Restrictions on crypto-related payments.
• Transfer limits applied to transactions involving digital asset platforms.
• Access to related financial services, including insurance.
• The impact of banking practices on businesses, consumers, innovation and market competition.

The APPG said it wants to understand how these restrictions are being applied, whether they are proportionate to the risks banks seek to manage and whether they create unnecessary obstacles for legitimate businesses operating in the sector.

Banking access remains a long-standing industry challenge

Access to traditional banking services has remained one of the crypto industry’s recurring operational challenges. Although digital asset firms operate in blockchain-based markets, they continue to rely on banks for payroll, supplier payments, tax settlements and other day-to-day financial activities.

Industry participants have argued for several years that opening and maintaining business bank accounts has become increasingly difficult, even for companies that comply with anti-money laundering requirements and other regulatory obligations. According to the APPG, similar concerns have been consistently raised by businesses across the UK digital asset sector, prompting Parliament to gather evidence directly from both financial institutions and affected companies.

The inquiry also follows reports that several major UK banks have introduced measures such as blocking payments to certain crypto platforms or imposing transfer limits on digital asset transactions. Lawmakers will assess whether those measures are being implemented consistently and whether they remain appropriate as the UK’s regulatory framework for crypto assets continues to develop.

Inquiry follows broader UK-US digital asset cooperation

The banking review comes shortly after the APPG welcomed a new set of joint recommendations published by HM Treasury and the U.S. Department of the Treasury through the Transatlantic Taskforce for the Markets of the Future. The recommendations outline a roadmap for closer UK-US cooperation on digital assets, stablecoins, tokenisation and capital markets, while encouraging greater coordination between regulators. The growing interest in the UK market, highlighted by developments such as the Robinhood UK crypto launch, also underscores the importance of ensuring that digital asset businesses can access banking and payment services on fair and proportionate terms.

Commenting on the recommendations, APPG Co-Chairs Lord Ed Vaizey of Didcot and Gurinder Singh Josan said:

“We strongly welcome the joint recommendations from HM Treasury and the U.S. Department of the Treasury, together with the UK-US Joint Statement on Stablecoins. This is a significant and timely development, coming just weeks after the UK published its final rules and guidance for its new cryptoasset regime and as the United States continues to advance its own approach to digital asset regulation.”

They also said the recommendations reflect the increasingly international nature of digital asset regulation.

“The announcement also recognises that digital assets are global by nature. As regulatory frameworks develop around the world, closer international cooperation will be essential to reduce fragmentation, promote greater alignment where appropriate and help shape high-quality global standards that give businesses the confidence to innovate and grow across borders.”

International comparison to form part of the review

The inquiry comes shortly after the UK published its updated crypto regulatory framework, which is expected to take effect in October 2027. Parliament said the timing provides an opportunity to evaluate whether banking access, alongside issues such as the UK crypto capital gains tax framework, could affect the country’s ambition to develop a competitive and well-regulated digital asset market.

As part of the review, the APPG will also examine how other major jurisdictions address banking access for crypto businesses, including:

• United States
• European Union
• Hong Kong
• Australia

Comparing international approaches will help lawmakers assess whether UK banking practices differ from those adopted in other regulated markets and whether policy changes may be warranted.

Although all-party parliamentary groups do not have legislative powers, their reports often contribute to wider policy discussions. Once the consultation concludes, the APPG’s findings are expected to inform future conversations between Parliament, regulators and the banking industry on balancing financial crime controls, fair access to banking services for regulated crypto businesses and wider UK political donations rules.