UK Parliament Probes Banking Barriers Facing Crypto Firms

The U.K.’s Crypto and Digital Assets All-Party Parliamentary Group (APPG) is turning its attention to banks that have denied crypto firms access to accounts or imposed limits on crypto-related transactions.

U.K. lawmakers have launched a cross-party inquiry to assess how extensively banks may have restricted cryptocurrency businesses by refusing account access and tightening controls on crypto payments. The probe, which began on Tuesday, aims to evaluate whether the financial system has effectively sidelined parts of the crypto industry.

The APPG is co-chaired by Ed Vaizey, a former Minister for the Digital Economy and current member of the House of Lords, alongside Labour MP Gurinder Singh Josan, according to an official statement.

Since the early days of the crypto sector, securing reliable banking relationships has been a persistent challenge. Industry participants have long reported cases of widespread “debanking,” particularly in the U.S., where the trend has been described as “Operation Chokepoint 2.0.”

The APPG noted that several major U.K. banks have also placed limits on crypto-related payments. As a result, the inquiry will examine the shortage of banking services available to crypto firms, as well as knock-on effects for related sectors such as insurance and professional services.

In addition, the group will investigate how banks are applying restrictions to crypto transactions, including measures such as blocking payments to certain platforms or setting transfer caps. The inquiry aims to determine whether these actions are proportionate and to assess their impact on consumers, businesses, innovation, and market competition.

“Over a number of years, the APPG has received consistent feedback from crypto and digital asset companies about the challenges they face in accessing banking services, as well as concerns over restrictions on crypto-related transactions,” Vaizey said.

The APPG has opened a six-week call for evidence, inviting submissions from stakeholders across banking, payments, fintech, and crypto sectors. The findings will be compiled into a report with recommendations for the government.