UK lawmakers have asked major British banks to explain their crypto policies as concerns grow over account access ahead of new industry rules.
UK Parliament Questions Banks on Crypto Access
The Crypto and Digital Assets All-Party Parliamentary Group has written to bank executives seeking details about their treatment of crypto and digital asset businesses.
Labour MP Gurinder Singh Josan and Lord Vaizey of Didcot asked banks whether they currently provide accounts to crypto firms and why applications may be refused. They also requested details of restrictions on payments involving digital asset platforms.
The lawmakers asked banks whether their policies could change once the UK’s new crypto regulatory framework becomes mandatory. The APPG said access to banking services “could be one of the single biggest barriers to growth for UK crypto and digital asset businesses.”
The questions form part of an inquiry opened by the APPG on July 21. Written submissions from banks, payment firms, fintech companies and crypto businesses remain open until August 31.
Banks Face Questions Over Crypto Payment Restrictions
Several UK banks have introduced restrictions on payments to crypto platforms, citing concerns around fraud, scams and customer protection. Research from the UK Cryptoasset Business Council estimated that about 40% of attempted transfers to crypto exchanges were blocked or delayed.
HSBC, NatWest, Monzo and Nationwide have introduced limits on transfers to crypto platforms, while Starling and Chase UK have prohibited some crypto-related payments. The Financial Times reported that limits at some banks range between £5,000 and £10,000 per month.
The APPG wants banks to explain the factors used when setting these restrictions and whether FCA authorization would change their approach. The lawmakers also acknowledged that banks must continue meeting financial crime and customer protection requirements.
Lord Vaizey described banking difficulties as “an unnecessary piece of friction” for crypto companies seeking to operate in Britain. The APPG said the inquiry will consider both banking safeguards and the ability of legitimate firms to access financial services.
New UK Crypto Rules Set 2027 Deadline
The Financial Conduct Authority plans to accept applications for authorization under the new crypto framework from September 30, 2026, through February 28, 2027. The full regime is expected to become mandatory on October 25, 2027.
The framework will cover areas including crypto trading platforms, custodians, intermediaries, stablecoin issuers and certain staking services. Existing registrations under the current anti-money laundering system will not automatically convert into authorization under the new regime.
Economic Secretary Lucy Rigby told Parliament in March that the government “would not expect” FCA-authorized crypto firms to face banking restrictions “simply because of the sector they belong to.”
The APPG plans to publish findings and recommendations after reviewing submissions from the industry and financial sector. The inquiry will also examine whether banking restrictions remain appropriate as regulated crypto businesses enter the new UK framework.
For digital asset market participants globally, exploring the best crypto apps for mobile trading can help identify platforms with diverse fiat-funding options.
Be the first to comment