UK Parliament Pulls Fire Alarm on Banks Ghosting Crypto Firms 🚨

The UK Parliament's Crypto and Digital Assets All-Party Parliamentary Group has opened a formal inquiry into widespread bank account denials and payment restrictions imposed on crypto businesses. Co-chairs Lord Vaizey of Didcot and Labour MP Gurinder Singh Josan CBE announced the inquiry on Tuesday, with written evidence accepted through August 31 and recommendations targeted ahead of the FCA's mandatory crypto regime scheduled for October 2027.

The inquiry will examine the practical obstacles cited by banks, including refusals to open or maintain business accounts, imposed transfer limits, payment blocks, and the proportionality of restrictions applied to crypto firms. It will also benchmark the UK approach against regulatory frameworks in the US, Hong Kong, Australia, and the European Union. The APPG stated that crypto and digital asset firms have consistently reported difficulty accessing UK banking services, and warned that unnecessary barriers risk slowing investment, innovation, and long-term growth.

Research published by the UK Cryptoasset Business Council in January 2026 found that roughly 40% of payments to crypto exchanges were blocked or delayed by UK banks, with one platform reporting almost £1 billion in rejected transactions during 2025. A separate survey indicated that 8% of crypto firms experienced full account closures without explanation. Industry groups have linked the pattern to risk-aversion following high-profile collapses and to ambiguous guidance from regulators and lenders on treatment of digital asset clients.

The APPG's probe lands inside a broader tightening cycle for UK crypto oversight, with the FCA preparing to bring spot crypto trading and custody under a fully regulated perimeter beginning in October 2027. The group has framed access to banking as essential for legitimate firms to operate payroll, execute supplier payments, and settle client transactions, and said restrictions are pushing activity offshore or out of the regulated sector. The inquiry's findings are expected to feed directly into consultations shaping the final shape of the 2027 regime.