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Ahmed Barakat
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The All-Party Parliamentary Group on Cryptocurrencies and Digital Assets in the UK Parliament has launched a formal investigation into why banks refuse to open accounts and block payments to cryptocurrency companies. Written evidence will be accepted until August 31, while the group aims to publish recommendations before the FCA’s mandatory cryptocurrency regime begins in October 2027. The move tests whether the UK’s ambition to become a global hub for digital assets can survive banking restrictions.
The inquiry was announced on Tuesday by co-chairs Lord Vaizey of Didcot and Labor MP Gurinder Singh Gosan CBE. It covers the difficulties in opening and maintaining business accounts, transfer limits, payment blocks, and whether banks apply restrictions proportionately. The UK’s approach will also be compared with that of the US, Hong Kong, Australia and the European Union.
The APPG has made its concerns clear. She said that cryptocurrency and digital asset companies have consistently reported difficulty accessing banking services in the UK. The group added that access to banking services is essential for legitimate businesses, while unnecessary barriers threaten to slow investment, innovation and growth in the long term.
The scale of the problem is still large. Research from UK Published in January 2026, the Cryptocurrency Business Council found that nearly 40% of payments to cryptocurrency exchanges were blocked or delayed by UK banks. One exchange reported nearly £1bn of declined transactions during 2025. Meanwhile, 80% of exchanges saw an increase in customer friction, while 70% described banking conditions as more hostile than a year ago.
These results contradict the government’s stated position. UK Treasury Secretary Lucy Rigby told Parliament in March 2026 that licensed cryptocurrency companies should not face restrictions simply because they operate in the sector. As a result, the investigation will examine why FCA-registered firms continue to face banking hurdles despite regulatory progress.
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The UK cryptocurrency framework and the Financial Conduct Authority (FCA) are sharpening the issue of de-banking
The investigation also follows the final encryption framework issued by the Financial Conduct Authority (FCA) in the United Kingdom. The licensing window opens in September 2026, while full compliance becomes mandatory on October 25, 2027. If licensed companies are still struggling to secure banking services, confidence in the new regulatory framework may be damaged.
At the same time, comparisons with overseas markets continue to grow. In the US, cryptocurrency companies have compared banking restrictions to Chokepoint 2.0. Kraken recently obtained a $22 million settlement from an auditor it claimed abandoned the exchange during that period. In Australia, Coinbase also criticized banks for restrictions on cryptocurrency-related services. The APPG will evaluate how competing jurisdictions deal with similar challenges.
The investigation arrives during a period of political transition. Andy Burnham became Prime Minister MondayWhile John Healey was appointed Minister of the Exchequer. Legal experts say global financial companies will closely monitor whether the new government provides a stable regulatory environment for digital assets and financial services.
Written applications will be accepted from July 21 to August 31 across the banking, payments, fintech and cryptocurrency sectors. The APPG will then publish the recommendations before the October 2027 deadline. Industry participants are expected to call for risk assessments on a case-by-case basis rather than imposing blanket restrictions on cryptocurrency companies registered with the Financial Conduct Authority (FCA).
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