A cross-party group of UK lawmakers has launched a parliamentary inquiry into the banking challenges faced by cryptocurrency businesses, seeking to determine whether banks are unfairly restricting access to financial services and impeding the country’s digital-asset industry.
The inquiry, announced on July 21 by the Crypto and Digital Assets All-Party Parliamentary Group (APPG), will investigate reports that crypto firms have struggled to open or maintain bank accounts and that retail customers have encountered payment blocks and transfer limits when attempting to buy digital assets.
The initiative comes only weeks after the UK finalized its long-awaited crypto regulatory framework, raising questions over whether banking practices are keeping pace with the government’s broader objective of establishing the country as a global centre for digital-asset innovation.
According to the APPG, evidence will be gathered from crypto businesses, banks, payment providers, regulators and consumer groups before recommendations are presented to Parliament and the government.
Inquiry Targets Banking Access and Payment Restrictions
The parliamentary review will examine a range of issues affecting the sector, including account closures, refusals to onboard crypto companies, payment restrictions imposed on customers and access to related financial services such as insurance.
Several major UK banks, including HSBC, NatWest, Santander, Nationwide and Starling Bank, have introduced various controls on cryptocurrency transactions in recent years. These measures range from outright payment blocks to daily transfer limits, with institutions citing fraud prevention, consumer protection and anti-money-laundering concerns.
The inquiry follows research cited by the APPG indicating that around 40% of attempted transfers from UK bank accounts to cryptocurrency exchanges have been blocked or delayed by banks. Industry participants have argued that such restrictions create uncertainty for legitimate businesses operating under increasingly clear regulatory expectations.
The APPG is co-chaired by Labour MP Gurinder Singh Josan and Lord Vaizey of Didcot, the former digital economy minister. While all-party parliamentary groups do not possess legislative authority, they frequently conduct evidence-based inquiries that influence government policy and parliamentary debate.
Balancing Consumer Protection and Industry Growth
Banks have consistently defended their cautious approach toward cryptocurrency transactions, pointing to elevated levels of fraud, scams and financial crime associated with certain digital-asset activities. Many institutions have strengthened controls following warnings from regulators about the risks facing retail investors.
Crypto businesses, however, argue that blanket restrictions penalize regulated firms alongside higher-risk operators. They contend that improved regulation should enable banks to distinguish compliant businesses from illicit actors rather than limiting access across the sector.
The inquiry also reflects broader international debates over so-called “debanking,” where businesses operating in emerging financial sectors claim they are being denied essential banking services despite complying with applicable laws.
The UK government has repeatedly stated its ambition to position Britain as a leading jurisdiction for digital assets and tokenized finance. Delivering on that objective will require not only a comprehensive regulatory framework but also practical access to banking infrastructure for licensed firms and their customers.
By examining the relationship between banks and the crypto sector, lawmakers hope to determine whether existing risk-management practices strike an appropriate balance between protecting consumers and supporting financial innovation. The findings could shape future discussions between regulators, financial institutions and the digital-asset industry as the UK’s crypto market continues to mature.
