A cross-party group of UK lawmakers has launched an inquiry into the banking obstacles confronting cryptocurrency businesses and consumers, Cointelegraph reported Tuesday. The investigation aims to assess how restricted access to financial services affects investment, competition, and the UK’s ambitions as a digital asset hub.
The All-Party Parliamentary Group (APPG) on Crypto and Digital Assets said it would examine why many crypto firms and their customers struggle to open or maintain bank accounts. Participants have reported sudden account closures, refused applications, and blanket bans on crypto-related transactions — often without clear justification from financial institutions.
Lisa Cameron, the APPG’s chair, told Cointelegraph that the inquiry would gather evidence from affected businesses, consumers, and banks themselves. The goal is to determine whether current practices stifle innovation, push activity offshore, or create an uneven playing field for UK-based companies competing with jurisdictions that offer clearer banking pathways.
The probe comes as the UK government and Financial Conduct Authority (FCA) push to establish a regulated framework for cryptoassets. Legislation covering stablecoins and broader crypto activities is advancing, but industry participants argue that without reliable banking access, the regulatory clarity rings hollow. Several firms have already relocated to the EU, Singapore, or the UAE, citing banking hostility as a primary driver.
Banks, for their part, cite anti-money laundering obligations and regulatory uncertainty as reasons for caution. The FCA’s registration regime for cryptoasset businesses has approved only a fraction of applicants, leaving many firms in a compliance limbo that banks are unwilling to navigate. The APPG said it would also explore whether guidance from the Bank of England or FCA could help de-risk onboarding for legitimate operators.
Submissions to the inquiry are open through September. The group plans to publish a report with recommendations for policymakers, regulators, and the banking sector before year-end. As Cameron put it, “If the UK wants to be a global crypto hub, the plumbing has to work.”
Source: Cointelegraph
