The UK Parliament's Crypto and Digital Assets All-Party Parliamentary Group (APPG) launched a formal inquiry on Tuesday into why banks are refusing accounts and blocking payments for crypto businesses. Co-chairs Lord Vaizey of Didcot and Labour MP Gurinder Singh Josan CBE announced the probe, which will accept written evidence until August 31 and aims to publish recommendations before the FCA's mandatory crypto regime becomes fully compliant on October 25, 2027.
What the inquiry covers
The APPG is looking at 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. In the US, crypto companies have compared banking restrictions to Operation Chokepoint 2.0; Kraken secured a $22 million settlement from an auditor it claimed abandoned the exchange. In Australia, Coinbase has criticised banks over restrictions on crypto-related services.
The scale of the problem
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. 80% of exchanges saw customer friction increase, while 70% described banking conditions as more hostile than a year earlier.
Political and regulatory backdrop
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 FCA's crypto framework authorisation window opens in September 2026, with full compliance mandatory on October 25, 2027. The inquiry also comes days after Andy Burnham became Prime Minister on July 20 and John Healey was appointed Chancellor of the Exchequer.
What industry wants
Industry participants are expected to advocate for case-by-case risk assessments instead of blanket restrictions on FCA-registered crypto firms. The APPG will take evidence until the end of August, with recommendations due before the 2027 deadline.
