UK Parliament begins inquiry into banking chokepoint for crypto businesses
A cross-party group in the UK Parliament has opened an inquiry into whether banks have restricted crypto businesses from accessing accounts and payment services. The Crypto and Digital Assets All-Party Parliamentary Group (APPG) announced the six-week call for evidence, seeking written submissions from the banking, payments, fintech, and crypto sectors.
The inquiry aims to quantify the extent to which banks have refused accounts to crypto firms or placed limits on crypto-related transactions. It will examine whether restrictions are proportionate and what impact they have on consumers, businesses, innovation, and competition. The APPG will also look at access to associated professional services, such as insurance.
The group is chaired by Lord Vaizey of Didcot, the former UK Government Minister for the Digital Economy, and Labour MP Gurinder Singh Josan CBE. In a statement, the APPG noted that crypto and digital asset businesses have reported consistent difficulties accessing banking services over a number of years, alongside concerns about transaction restrictions.
Banking access has been a persistent challenge for the crypto industry. In the United States, the phenomenon has been described as "Operation Chokepoint 2.0," with reports that banks have closed accounts or imposed limits on crypto-related activity. In the UK, several major banks have introduced restrictions on crypto payments, according to the APPG.
The inquiry will focus on practical issues such as account refusals, blocking of payments to certain crypto firms, and the imposition of transfer limits. It will consider whether such measures are applied consistently and whether they align with regulatory expectations for managing risk. The APPG plans to publish a report with findings and recommendations for the UK Government.
From a regulatory perspective, banks are required to assess and mitigate risks, including those associated with crypto assets. However, industry advocates argue that blanket restrictions can hamper legitimate business activity and slow the development of digital asset markets. The inquiry is likely to examine whether a more nuanced approach is possible, allowing banks to manage risk without excluding compliant firms.
The six-week evidence-gathering period provides an opportunity for stakeholders to submit data and examples. The breadth of the call, which includes banking, payments, fintech, and crypto participants, suggests the APPG intends to compile a comprehensive picture of the current landscape.
The outcome could influence how UK regulators and banks approach crypto-related services in the coming years. If the inquiry finds that restrictions are unduly restrictive or applied unevenly, it may recommend clearer guidance or policy changes aimed at balancing risk management with innovation.
For crypto businesses operating in the UK, the inquiry is a significant development. Banking relationships are a foundational requirement for many companies, and sustained difficulties can raise the cost of doing business or limit growth. The APPG's findings may affect how easily new entrants can establish themselves and how existing firms can scale their operations.