UK lawmakers have formally written to the chief executives of major banks demanding an explanation for why crypto firms and individuals are being refused accounts. The All-Party Parliamentary Group (APPG) on crypto and digital assets sent the letters this week, pressing banks to justify their policies and warning that the lack of basic banking access is becoming a significant barrier to growth in the sector.
What the letter asks for
The APPG is not asking for a change in policy yet — it wants answers first. The letter requests that bank CEOs detail their current approach to crypto-related clients, including how they assess risk and whether they apply blanket bans rather than case-by-case reviews.
The group has also asked for data on how many crypto businesses have been turned away or had accounts closed in recent months. The tone is pointed: lawmakers want to know if banks are making decisions based on actual regulatory guidance or on internal risk appetites that have no legal basis.
Why banking access matters
For a crypto company, a bank account is not a luxury. It is the on-ramp for paying staff, covering rent, and settling tax bills. Without one, a legitimate business can be pushed toward informal payment methods or simply forced to shut down.
The APPG's warning is blunt: if the UK wants to position itself as a serious hub for digital assets, it cannot have a banking sector that treats the entire industry as unbankable. The group has previously raised concerns about the 'de-risking' trend, where banks cut off whole categories of clients to avoid regulatory scrutiny.
What happens next
The banks now have a deadline to respond. The APPG has said it will review the answers and, if the explanations are not satisfactory, it will consider whether further parliamentary action is needed.
That could mean summoning executives to give evidence in person, or pushing the Financial Conduct Authority to clarify its position on when a bank can refuse service. For now, the ball is in the banks' court — and the clock is ticking.
