UK lawmakers are stepping up scrutiny of how banks treat crypto companies as the country prepares to subject much of the digital assets industry to formal regulation.
MP Gurinder Singh Josan and Lord Weizi of Didcot, co-chairs of the All-Party Parliamentary Group on Crypto and Digital Assets, sent a letter to the heads of major UK banks and banking service providers on August 11.
The letter asks the lenders to explain whether they provide accounts to crypto companies, what restrictions they place on digital asset transactions, and whether these rules will change after the new regulatory regime takes effect.
"Access to banking services could be one of the biggest obstacles to the growth of UK-based crypto and digital asset companies and potentially undermine the success of the UK's upcoming crypto regulatory regime," the lawmakers wrote.
Banks Asked to Clarify Risk Policy
The APPG said it has repeatedly received submissions from crypto companies having difficulty opening or maintaining bank accounts. Furthermore, the group has received reports of payment limits and restrictions affecting crypto-related transactions.
The lawmakers acknowledged that banks have obligations to meet anti-money laundering requirements, consumer protection, and other regulatory duties. However, they questioned whether companies should still face broad restrictions after being licensed under the new system.
The letter argues that banks' decisions should more closely reflect "the individual risk profile of a company rather than simply the sector in which it operates."
Economic Secretary to the Treasury, Lucy Rigby, expressed a similar view earlier this year. She stated in Parliament that the government does not expect crypto companies licensed by the FCA to be "subject to restrictions by banking service providers simply because of the sector
they are in."
Banks were also asked to identify the regulatory, legal, compliance, as well as commercial and risk factors that determine their approach.
Inquiry Could Shape UK Crypto Policy
This letter is part of a broader APPG inquiry into crypto companies' access to banking services, launched on July 21.
The group is examining the scale of the problem, its impact on investment and growth, and the need for additional government or regulatory action. Banks are being asked what policymakers could do to make it easier for legitimate crypto companies to access financial services.
The inquiry covers a broad range of companies, including exchanges, custodians, payment networks, wallet providers, tokenization companies, and stablecoin issuers.
Written responses are due by August 31. The parliamentary group plans to use the feedback to develop recommendations for the government.
The timing is deliberate. The UK aims to attract digital asset companies while introducing clearer regulatory standards. If licensed companies continue to struggle to access basic banking services, lawmakers fear the new regime may fail to achieve its broader competitiveness goals.
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