UK MPs Question Banks Over Denying Crypto Business Accounts

A group of UK lawmakers has written to the chief executives of several major banks asking for detailed explanations after reports that banks repeatedly refuse to open business accounts for cryptocurrency firms. The correspondence seeks information on how banks assess and decide on applications from companies in the crypto sector.

The letters request data on the number of account applications rejected, the reasons given, and whether any bank policies effectively bar companies in the sector. MPs ask banks to describe the internal checks used to assess crypto clients, how they apply anti-money-laundering (AML) and know-your-customer (KYC) requirements, and whether staff receive specific training and oversight when reviewing crypto-related accounts.

Lawmakers ask for details on whether decisions are made on a case-by-case basis or through broad restrictions, and whether banks escalate concerns to regulators. They also request information on any use of third-party screening tools, the frequency with which rejection decisions are overturned on appeal or after further documentation, and examples of common deficiencies in applications.

The letters follow reports from start-ups, exchanges and service providers that they face long delays, unexplained rejections or burdensome documentation demands when applying for standard business banking. Complainants say lack of banking relationships has made routine tasks harder, including payroll, tax payments and receiving customer funds.

Banking groups have previously cited AML obligations, regulatory uncertainty and the fast-changing nature of crypto products as reasons for caution. The lawmakers asked banks to point to specific compliance failures by applicants if these are the basis for account refusals, and to explain whether banks offer a remediation path for firms to meet requirements.

Lawmakers also asked for copies of any internal or external policies that explicitly reference cryptocurrency or related business activities, and data on accounts closed or placed under enhanced monitoring because of links to crypto business.

The letters target senior executives responsible for commercial and retail banking and set a deadline for written responses. Depending on the material banks provide, parliamentary follow-up could include additional questions, formal hearings or requests for input from financial regulators.

Regulators in the UK have strengthened anti-money-laundering rules in recent years, and the government has outlined plans to create a regulatory framework for crypto firms. Parliament’s requests form part of wider scrutiny aimed at understanding how banks apply compliance rules while allowing regulated firms to operate under UK law.