Britain's cross-party parliamentary group on crypto and digital assets has kicked off an inquiry into banks that deny accounts to crypto firms or impose limits on crypto-related transactions. The Crypto and Digital Assets All-Party Parliamentary Group (APPG) said it wants to understand why some lenders are freezing out the sector, and whether the practice is hurting the UK's ambitions to become a global hub for digital finance.
What the APPG wants to know
The inquiry will look at how many banks have refused services to crypto companies, the reasons given — often cited as anti-money laundering compliance or reputational risk — and whether those reasons are justified. The APPG, made up of MPs and peers from multiple parties, has the power to summon witnesses and publish findings. It’s expected to hear from both crypto firms that have been de-banked and the banks themselves, though no date for hearings has been announced yet.
The group’s chair, a Labour MP, has previously said that cutting off crypto businesses from the banking system without clear rules risks driving the industry offshore. The UK Treasury has been working on a crypto regulatory framework, but the pace of that legislation has frustrated some in the sector.
Why banks are cautious
UK banks have a history of avoiding crypto clients. After the collapse of FTX in 2022 and a string of enforcement actions by the Financial Conduct Authority, many lenders decided the compliance burden was too heavy. Some outright closed accounts; others blocked inbound or outbound crypto transfers. The industry has argued that this amounts to de-risking that punishes legitimate firms, not just bad actors.
This isn't a new problem. The APPG’s move formalizes a long-running complaint. Crypto businesses say they cannot get merchant accounts, payroll services, or even basic checking accounts, while individual users sometimes find their credit card payments to exchanges blocked.
What comes next
The APPG will collect written evidence over the coming weeks and is expected to hold at least one oral evidence session before the end of 2026. Its report, when published, won’t be binding — but it puts pressure on the FCA and the Treasury to address the issue. The inquiry also signals that parliament is watching how banks treat crypto firms, especially as the UK competes with the EU, Singapore, and the US for digital-asset business.
For now, crypto firms are left waiting. The APPG hasn’t named any specific banks it will call, but the list likely includes the big high street names. The inquiry’s first concrete step will be the deadline for written submissions, which the group has yet to set.
