UK Lawmakers Scrutinize Financial System Hurdles for Crypto Industry

The U.K.’s Crypto and Digital Assets All-Party Parliamentary Group (APPG) is probing banks that have declined to open accounts for crypto firms or have introduced curbs on crypto-related activity.

U.K. lawmakers have launched a cross-party inquiry to examine how extensively banks may have restricted cryptocurrency businesses by limiting access to banking services and tightening rules on crypto payments. The investigation, which began on Tuesday, seeks to determine whether these practices have effectively held back the sector.

The APPG is co-led by Ed Vaizey, a former Digital Economy Minister and member of the House of Lords, and Labour MP Gurinder Singh Josan, according to an official statement.

Gaining access to banking has long been a hurdle for the crypto industry, with companies and individuals often reporting difficulties opening or maintaining accounts. In the U.S., similar trends have been widely referred to as “Operation Chokepoint 2.0.”

The APPG noted that several major U.K. banks have also imposed limits on crypto-related payments. As a result, the inquiry will focus on the shortage of banking services for crypto businesses, as well as the impact on related areas such as insurance and other professional services.

The group will also assess how banks are enforcing transaction restrictions, including blocking payments to certain crypto firms or setting transfer limits. It aims to evaluate whether these measures are proportionate and to understand their effects on consumers, businesses, innovation, and competition.

“Over the years, the APPG has repeatedly heard from crypto and digital asset firms about the challenges they face in accessing banking services, alongside concerns about restrictions on crypto transactions,” Vaizey said.

The APPG has opened a six-week evidence-gathering process, inviting submissions from stakeholders across banking, payments, fintech, and crypto sectors. The findings will be compiled into a report with recommendations for the government.