UK lawmakers have launched a cross-party inquiry into whether banks have unfairly restricted cryptocurrency firms from accessing banking services and imposed limits on crypto-related payments, expanding Parliament’s examination of the country’s digital asset sector.
Summary
- UK lawmakers have opened an inquiry into claims that banks are restricting banking services and crypto related payments for digital asset businesses.
- The parliamentary review will gather evidence from banks, fintech firms and crypto companies before submitting recommendations to the UK government.
- The inquiry comes as the UK continues developing its digital asset framework through stablecoin rules and tokenized finance initiatives.
According to a statement released on Tuesday by the UK Crypto and Digital Assets All-Party Parliamentary Group (APPG), the inquiry will gather evidence on claims that crypto businesses have struggled to secure bank accounts and have faced payment restrictions that industry participants say are affecting day-to-day operations.
The APPG said it is inviting written submissions over a six-week period from banks, payment companies, fintech firms, crypto businesses and other stakeholders before publishing a report containing its findings and recommendations for the UK government.
Chaired by former UK government minister for the digital economy Lord Vaizey of Didcot and Labour MP Gurinder Singh Josan CBE, the cross-party parliamentary group said it wants to understand whether current banking practices are proportionate and whether they have unintended consequences for consumers, businesses and competition.
The review comes as the UK continues to build its regulatory framework for digital assets while also advancing initiatives covering stablecoins and tokenized financial markets.
Parliament turns attention to banking access
Access to banking has remained a long-standing concern for cryptocurrency companies, many of which argue that opening and maintaining business accounts has become increasingly difficult despite operating within legal and regulated frameworks.
According to the APPG, the inquiry will examine reports that crypto firms have been denied banking services or experienced account closures, alongside claims that businesses connected to the sector, including professional service providers such as insurers, have also encountered difficulties.
The parliamentary group said it will also investigate restrictions placed on crypto-related payments by several major UK banks.
Those measures, according to the APPG, include blocking transfers to certain crypto platforms or setting limits on payments involving digital asset businesses. Lawmakers said they want to determine how such restrictions are being applied, whether they are proportionate to the risks banks are trying to manage and what effect they may have on innovation, competition, businesses and retail customers.
Rather than limiting the review to crypto companies, the inquiry will seek evidence from the banking and payments industries to understand how financial institutions assess risks associated with digital assets and whether existing policies remain appropriate.
Lord Vaizey said the APPG has received consistent reports over several years from crypto and digital asset businesses describing difficulties in accessing bank accounts and banking services, along with concerns over restrictions affecting crypto-related transactions.
Once the consultation period concludes, the parliamentary group plans to publish a report outlining its conclusions together with recommendations for policymakers.
Industry has raised concerns for years
Difficulties obtaining banking services have been one of the crypto industry’s longest-running complaints in several jurisdictions.
In the United States, allegations that regulators and financial institutions collectively discouraged banks from serving crypto businesses became widely known within the industry as “Operation Chokepoint 2.0.” Industry participants argued that lawful companies were effectively cut off from the banking system through regulatory pressure, although U.S. regulators have disputed aspects of those claims.
The APPG did not compare the UK directly with the U.S. experience, but lawmakers acknowledged that access to banking has become a recurring issue raised by businesses operating in Britain’s digital asset sector.
By collecting evidence from financial institutions, payment providers and crypto companies, Parliament is seeking to establish whether similar concerns exist in the UK and whether current banking practices are creating unnecessary barriers for legitimate businesses.
The inquiry also comes at a time when digital asset firms are increasingly seeking traditional banking relationships as more jurisdictions introduce dedicated crypto regulations and licensing regimes.
Banking review follows broader crypto policy developments
The parliamentary inquiry arrives as the UK government continues to expand its work on digital assets across multiple areas of financial policy.
Earlier this month, Chancellor Rachel Reeves announced that the government intends to issue its first Digital Gilt Instrument (DIGIT) by early 2027, making the UK the first G7 nation to launch a sovereign bond on distributed ledger infrastructure.
The planned sterling-denominated bond will be issued through HSBC’s Orion blockchain platform within the Bank of England and Financial Conduct Authority’s Digital Securities Sandbox. Officials have said the pilot will test whether distributed ledger technology can improve settlement efficiency, reduce reconciliation work and lower operational costs in government debt markets.
The banking inquiry also follows a joint UK-US policy statement on stablecoins and tokenized finance released through the Transatlantic Taskforce for Markets of the Future.
In that statement, both governments agreed that properly regulated stablecoins could support cross-border payments, financial market infrastructure and capital market transactions while encouraging regulatory cooperation between the two countries.
The framework outlined shared principles including one-to-one backing with high-quality liquid assets, segregation of reserve assets from company funds, timely redemption rights for holders and legal protections during insolvency proceedings. While the agreement does not create mutual recognition between the two markets, it signals that both governments are moving in a similar regulatory direction for digital money.
Against this backdrop, political debate surrounding cryptocurrencies has also intensified in recent weeks.
Earlier this month, Labour MPs proposed making a temporary ban on cryptocurrency donations to political parties permanent following Nigel Farage’s resignation as an MP during investigations into multimillion-pound gifts linked to crypto industry figures.
According to earlier reporting by The Guardian, Labour lawmakers argued that tighter rules would strengthen protections against political influence from wealthy donors, while Farage denied wrongdoing and said the benefits under review complied with parliamentary disclosure requirements.
The outcome of the APPG’s inquiry is unlikely to create immediate legal obligations because all-party parliamentary groups do not have legislative powers. Even so, its findings could shape future discussions between lawmakers, regulators and the banking industry as the UK continues developing its approach to digital assets and financial services.
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