Key facts
- UK lawmakers are questioning major banks about their policies on crypto firm accounts and payment restrictions.
- The Crypto and Digital Assets APPG has written to banks seeking explanations for these policies.
- Banks cite concerns over financial crime and customer protection for blocking or limiting crypto-related payments.
- Limited banking access is seen as a significant barrier to the growth of UK crypto businesses.
- The inquiry comes ahead of new UK crypto regulatory rules set to become mandatory in October 2027.
UK lawmakers are formally requesting that major banks explain their policies regarding cryptocurrency firms, citing widespread difficulties these businesses face in accessing essential banking services. The Crypto and Digital Assets All-Party Parliamentary Group (APPG) has sent a letter to the chief executives of significant UK banks, posing questions about their approach to digital asset companies.
The letter, co-authored by Labour MP Gurinder Singh Josan and Lord Vaizey of Didcot, highlights instances where crypto firms have struggled to open accounts and reports of banks restricting crypto-related payments. The APPG argues that limited banking access could significantly impede the growth of UK crypto businesses and potentially undermine the effectiveness of the country's upcoming regulatory framework for digital assets.
Banks have cited concerns over financial crime and the risk of retail customers losing money due to the volatility of cryptocurrencies. Research from the UK Cryptoasset Business Council indicated that approximately 40% of attempted transfers to crypto exchanges are blocked or delayed by banks. Several institutions, including HSBC, NatWest, Monzo, and Nationwide, have imposed monthly transfer limits ranging from £5,000 to £10,000, while others like Starling and Chase UK have prohibited such transactions.
Economic Secretary to the Treasury, Lucy Rigby, previously stated that under the new regime, firms licensed by the Financial Conduct Authority (FCA) should not face banking restrictions solely based on their sector. The FCA finalized its rules for the crypto sector in June, with the regime set to become mandatory in October 2027. The APPG's inquiry, launched on July 21 with written submissions due by August 31, seeks to gather further evidence on the issue.