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UK lawmakers launch inquiry into crypto banking and payment access

A cross-party UK panel will examine whether bank restrictions on crypto transfers are proportionate, after research found banks blocked or delayed about 40% of transfers to crypto exchanges.

Reported · Written up by our desk · Regulation

A cross-party group of UK MPs and peers has launched a parliamentary inquiry into banking access for crypto and digital asset firms, focusing on why companies struggle to open accounts and why banks restrict crypto-related payments.

The Crypto and Digital Assets APPG said the probe will consider account access and related services, including insurance, as well as transfer limits and payment blocks. It will also assess whether the restrictions are proportionate and how they affect consumers, competition, and innovation.

The initiative follows research published by the UK Cryptoasset Business Council in January that estimated UK banks blocked or delayed around 40% of attempted transfers to crypto exchanges. In that research, 70% of exchanges surveyed said the restrictions were hurting investment, expansion, or hiring in the UK.

In a joint statement, the lawmakers said access to banking services is fundamental for legitimate businesses and that unnecessary barriers could hinder growth, investment, and innovation. They also pointed to the timing ahead of the UK crypto regime coming into force, as HM Treasury has acknowledged the issue and said regulated firms should not be shut out for operating in crypto, according to Decrypt.

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