Key facts
- UK Parliament's Crypto and Digital Assets APPG has launched an inquiry into banking access for crypto firms.
- The inquiry will investigate why banks restrict crypto businesses' accounts and payments.
- Research indicates UK banks block or delay a significant portion of transfers to crypto exchanges.
- The APPG will consider international approaches to crypto banking access.
- A report with recommendations will be submitted to the UK Government.
A cross-party group of UK lawmakers has launched a parliamentary inquiry into the banking difficulties faced by the country's crypto and digital asset businesses. The Crypto and Digital Assets All-Party Parliamentary Group (APPG), co-chaired by Lord Vaizey of Didcot and Labour MP Gurinder Singh Josan CBE, will examine why firms struggle to open accounts and why banks restrict crypto-related payments. This inquiry follows research indicating that UK banks blocked or delayed approximately 40% of transfers to crypto exchanges, with 70% of surveyed exchanges reporting that these restrictions negatively impacted their investment, expansion, or hiring plans. The APPG aims to assess whether these banking barriers undermine the UK's stated goal of becoming a "global leader" in digital assets, especially as the country finalizes its new crypto regulatory framework. The inquiry will also look at international approaches from the United States, Hong Kong, Australia, and the European Union. Written evidence will be collected for six weeks, concluding on August 31, after which a report with findings and recommendations will be submitted to the UK Government.