The UK Parliament's Crypto and Digital Assets All-Party Parliamentary Group launched a formal inquiry on Tuesday into why banks refuse to open accounts and block payments for crypto businesses. The inquiry, announced by co-chairs Lord Vaizey of Didcot and Labor MP Gurinder Singh Josan CBE, will accept written evidence until August 31 and aims to publish recommendations before the FCA's mandatory crypto regime begins on October 25, 2027. The move tests whether the UK's ambition to become a global digital asset hub can survive banking restrictions that crypto firms have consistently reported. Research from the UK Cryptoasset Business Council published in January 2026 found roughly 40% of payments to crypto exchanges were blocked or delayed by UK banks, with one platform reporting almost £1 billion in rejected transactions during 2025. The inquiry arrives as the UK finalizes its FCA crypto framework, with the authorization window opening in September 2026 and full compliance becoming mandatory in October 2027.
APPG Inquiry Covers Account Access and Payment Restrictions
The inquiry covers difficulties opening and maintaining business accounts, transfer limits, payment blocks, and whether banks apply restrictions proportionately. It will also compare the UK's approach with the US, Hong Kong, Australia, and the European Union. The APPG stated that crypto and digital asset firms have consistently reported difficulty accessing UK banking services. The group added that banking access is essential for legitimate businesses, while unnecessary barriers risk slowing investment, innovation, and long-term growth. Written submissions will be accepted from July 21 through August 31 across banking, payments, fintech, and crypto sectors.
UK Banks Blocked 40% of Crypto Payments in Research Period
Research from the UK Cryptoasset Business Council, published in January 2026, found roughly 40% of payments to crypto exchanges were blocked or delayed by UK banks. One platform reported almost £1 billion in rejected transactions during 2025. Meanwhile, 80% of exchanges saw customer friction increase, while 70% described banking conditions as more hostile than a year earlier. These findings contrast with the government's stated position. HM Treasury Economic Secretary Lucy Rigby told Parliament in March 2026 that licensed crypto firms should not face restrictions simply because they operate in the sector. The inquiry will examine why FCA-registered businesses continue facing banking hurdles despite regulatory progress.
FCA Framework Sets October 2027 Compliance Deadline
The inquiry follows the UK's finalized FCA crypto framework. The authorization window opens in September 2026, while full compliance becomes mandatory on October 25, 2027. The APPG will publish recommendations before the October 2027 deadline. Industry participants are expected to advocate for case-by-case risk assessments instead of blanket restrictions on FCA-registered crypto firms.
International Markets Face Similar Banking Challenges
Comparisons with overseas markets continue to grow. In the United States, crypto companies have compared banking restrictions to Operation Chokepoint 2.0. Kraken recently secured a $22 million settlement from an auditor it claimed abandoned the exchange during that period. In Australia, Coinbase has also criticized banks over restrictions on crypto-related services. The APPG will assess how competing jurisdictions have handled similar challenges.
New Government to Oversee Inquiry Recommendations
The inquiry arrives during a political transition. Andy Burnham became Prime Minister on Monday, while John Healey was appointed Chancellor of the Exchequer. Legal experts say global financial firms will closely watch whether the new government delivers a stable regulatory environment for digital assets and financial services.
FAQ
What did the UK Parliament's APPG announce on Tuesday?
The UK Parliament's Crypto and Digital Assets All-Party Parliamentary Group launched a formal inquiry on Tuesday into why banks refuse to open accounts and block payments for crypto businesses. The inquiry will accept written evidence until August 31 and aims to publish recommendations before the FCA's mandatory crypto regime begins on October 25, 2027.
What did research from the UK Cryptoasset Business Council find about crypto payment restrictions?
Research from the UK Cryptoasset Business Council, published in January 2026, found roughly 40% of payments to crypto exchanges were blocked or delayed by UK banks. One platform reported almost £1 billion in rejected transactions during 2025, while 80% of exchanges saw customer friction increase and 70% described banking conditions as more hostile than a year earlier.
