A cross-party parliamentary group has opened a formal inquiry into whether UK banks are blocking or restricting services to cryptocurrency businesses, targeting a problem that industry representatives say has persisted since digital assets first emerged in Britain.
The Crypto and Digital Assets All-Party Parliamentary Group announced on Monday that it would examine how restrictions on bank accounts and crypto-related transactions affect investment, competition, and economic growth in the sector. The APPG is chaired by Ed Vaizey, a former Minister for the Digital Economy and a member of the House of Lords, and Gurinder Singh Josan, a Labour MP.
Written submissions from banks, payment providers, crypto firms, and other stakeholders are open until August 31. The group plans to publish its findings and recommendations after that period closes.
What prompted the inquiry and what the data shows
The APPG said it has received consistent reports over several years of crypto businesses encountering difficulties accessing basic bank accounts and associated professional services including insurance. Several major UK banks have introduced restrictions on crypto-related payments, the group said.
A January survey by the UK Cryptoasset Business Council provided specific numbers behind those reports. Ten crypto exchanges told the council that banks blocked or delayed 40% of transactions to crypto platforms. Separately, 70% of respondents said the restrictions had reduced their willingness to invest, expand, or hire in the UK.
"Over a number of years, the APPG has heard consistent reports from crypto and digital asset businesses that they face difficulties accessing bank accounts and banking services, alongside concerns about restrictions on crypto-related transactions by banks," Vaizey said.
What the inquiry will examine and the questions it has not yet answered
The inquiry will focus on two distinct problems. The first is the shortage of business bank accounts available to crypto firms, which leaves companies unable to pay staff, manage supplier invoices, or secure professional insurance. The second is the restrictions banks have placed on crypto-related transactions, including blocking payments to certain crypto firms or imposing transfer limits on customers.
The APPG said it wants to understand how those restrictions are being applied, whether they are proportionate to the underlying risks of fraud and financial crime, and what their cumulative effect has been on consumers, innovation, and competition in the UK market. The group also plans to examine policy approaches taken in other jurisdictions, including Hong Kong and the European Union.
The timing relative to the FCA authorization window
The inquiry opens at a moment of structural change in UK crypto regulation. The Financial Conduct Authority is scheduled to begin accepting authorization applications from crypto firms on September 30. Economic Secretary Lucy Rigby has stated publicly that FCA-licensed firms should not face blanket banking restrictions.
The gap between that government position and the on-the-ground reality for crypto businesses is part of what the inquiry seeks to document. If restrictions remain in place after FCA authorization begins, companies that complete the regulatory process could still find themselves without banking relationships or payment access.
The systematic exclusion of crypto firms from banking services has a recognized parallel in the United States, where the practice of refusing accounts and cutting off payment access to digital asset companies was labeled Operation Choke Point 2.0 by critics. The UK pattern has not carried that label, but the structural dynamic described by the APPG and the Cryptoasset Business Council survey data closely mirrors it: compliant firms being refused services through blanket policies rather than individual risk assessments.
The APPG's call for evidence runs across six weeks. It covers the banking, payments, fintech, and crypto sectors. A report setting out findings and recommendations to the government will follow.
Alex Shepel
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