UK Lawmakers Press Banks on Crypto Access Ahead of New Rules

Probe on Banking Barriers for Crypto Access in the UK Deepens

U.K. lawmakers are stepping up scrutiny of banks’ treatment of crypto companies as the United Kingdom prepares to bring more of the digital asset industry under formal regulation.

Gurinder Singh Josan MP and Lord Vaizey of Didcot, co-chairs of the Crypto and Digital Assets All-Party Parliamentary Group, wrote to the chief executives of major UK banks and banking service providers on Aug. 11.

The letter asks lenders to explain whether they provide accounts to crypto firms, what restrictions they impose on digital asset transactions, and whether those policies will change once the new regulatory regime takes effect.

“Access to banking services could be one of the single biggest barriers to growth for U.K. crypto and digital asset businesses, and could potentially undermine the success of the U.K.’s forthcoming crypto regime,” the lawmakers wrote.

Banks Asked to Explain Risk Policies

The APPG said it has repeatedly heard from crypto businesses that struggle to open or maintain bank accounts. It has also received reports of payment limits and restrictions affecting crypto-related transactions.

Lawmakers acknowledged that banks must meet anti-money laundering, consumer protection and other regulatory obligations. However, they questioned whether firms should continue to face broad restrictions once they become authorized under the new framework.

The letter argues that banking decisions should increasingly reflect “a firm’s individual risk profile, rather than simply the sector in which it operates.”

Economic Secretary to the Treasury Lucy Rigby expressed a similar view earlier this year. She told Parliament that the government would not expect FCA-authorized crypto firms to be “subject to restrictions by banking services providers simply because of the sector
they belong to.”

Banks have also been asked to identify the regulatory, legal, compliance, commercial and risk factors that shape their approach.

Inquiry Could Shape UK Crypto Policy

The letter is part of the APPG’s broader inquiry into crypto banking access, launched on July 21.

The group is examining the scale of the problem, its effect on investment and growth, and whether further government or regulatory action is required. Banks are being asked what policymakers could do to make it easier for legitimate crypto businesses to access financial services.

The inquiry covers a wide range of companies, including exchanges, custodians, payment firms, wallet providers, tokenization businesses and stablecoin issuers.

Written evidence is being accepted through Aug. 31. The APPG plans to use the responses to develop recommendations for the government.

The timing is significant. The U.K. is trying to attract digital asset businesses while imposing clearer regulatory standards. If licensed firms still struggle to obtain basic banking services, lawmakers fear the new regime could fall short of its broader competitiveness goals.