UK MPs probe banks’ restrictions on crypto firms

The Crypto and Digital Assets All-Party Parliamentary Group (APPG) opened an inquiry in the UK to assess whether crypto businesses and consumers face barriers to banking services, including account denial and restrictions on crypto-related transactions. The group will examine how such measures affect investment, competition and economic growth. The inquiry was announced on Monday.

The APPG invited written evidence from banks, payment providers, crypto firms, exchanges, custody providers and consumer representatives. Submissions are open until Aug. 31. After that date the group plans to analyse the material and publish findings and recommendations.

The inquiry follows industry reports of strained banking relationships. A January survey by the UK Cryptoasset Business Council found ten exchanges reported banks blocked or delayed about 40% of transactions to crypto platforms, and 70% of respondents said the restrictions reduced their willingness to invest, expand or hire in the UK.

The APPG described the work as a fact-finding exercise to record practical problems firms and consumers face when seeking accounts and payment services for crypto activity. The group will consider account closures, transaction limits and payment refusals and whether those actions align with regulatory and commercial risk management.

The inquiry timetable overlaps with a regulatory deadline: the Financial Conduct Authority will begin accepting authorisation applications from crypto firms on Sept. 30. The APPG intends to complete evidence-gathering before that date so its findings can inform policy discussions and industry planning ahead of the FCA application window.

Submissions may include specific cases of account denial or transaction restriction, internal bank policies, compliance expectations and any documented effects on business decisions or consumer access. After reviewing written evidence the APPG will publish a report with recommendations for lawmakers and regulators.