UK Parliament opened a six-week inquiry examining banking restrictions affecting crypto firms while gathering evidence from financial institutions and industry stakeholders. Lawmakers will in
UK lawmakers have launched a parliamentary inquiry into claims that cryptocurrency businesses face unnecessary banking restrictions, placing financial access at the center of Britain’s digital asset policy debate.
The UK Crypto and Digital Assets All-Party Parliamentary Group (APPG) will collect evidence over the next six weeks from banks, payment providers, fintech companies and crypto firms. The review will examine reports of account closures, payment restrictions and other banking challenges before issuing recommendations to the UK government.
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The inquiry aims to determine whether banks are applying fair and proportionate measures when dealing with cryptocurrency businesses. Lawmakers also want to understand whether existing practices are limiting competition, innovation and access to financial services for legitimate firms. Chaired by Lord Vaizey of Didcot and Labour MP Gurinder Singh Josan CBE, the cross-party parliamentary group is inviting written submissions from stakeholders across the financial and digital asset industries. The evidence gathered will help Parliament assess whether current banking policies require changes.
Moreover, the review will examine reports that some banks have denied business accounts to crypto companies or restricted payments involving digital asset platforms. Lawmakers also plan to investigate claims that insurers and other professional service providers linked to the crypto sector have experienced similar difficulties.
Lord Vaizey noted that the APPG has received consistent complaints from digital asset businesses over several years regarding limited access to banking services. Consequently, Parliament wants to understand how financial institutions assess crypto-related risks and whether those assessments remain appropriate.
The inquiry comes as the UK expands its regulatory framework for digital assets and blockchain-based financial services. Earlier this month, Chancellor Rachel Reeves announced plans to issue the country’s first Digital Gilt Instrument by early 2027. The sterling-denominated bond will operate through HSBC’s Orion blockchain platform within the Bank of England and Financial Conduct Authority’s Digital Securities Sandbox. Officials expect the pilot to evaluate whether distributed ledger technology can improve settlement efficiency and reduce operating costs.
Additionally, the banking review follows a joint UK-US policy statement supporting regulated stablecoins and tokenized finance. Both governments endorsed principles covering reserve backing, asset segregation, redemption rights and protections during insolvency proceedings. The inquiry also arrives amid wider political debate surrounding cryptocurrency regulation. Labour MPs recently proposed making a temporary ban on cryptocurrency donations to political parties permanent while discussions over digital asset oversight continue.
The APPG does not have legislative powers, meaning its inquiry will not create immediate legal obligations. However, its findings could influence future discussions between lawmakers, regulators and the banking sector as the UK refines its approach to cryptocurrency regulation and financial services.
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