UK Parliament Launches Inquiry Into Bank Restrictions on Crypto Firms

British lawmakers have opened a cross party inquiry into how the country’s banks have limited crypto companies’ access to basic banking services, including outright account refusals and transaction restrictions.

Inquiry Targets Banking Access Issues

The Crypto and Digital Assets All Party Parliamentary Group launched the investigation on Tuesday, calling for written evidence from across the banking, payments, fintech and crypto industries over a six-week period. The group is jointly chaired by Ed Vaizey, a former Minister for the Digital Economy and member of the House of Lords, along with Labour MP Gurinder Singh Josan.

A Long-Standing Problem for Crypto Businesses

Difficulty securing banking relationships has plagued crypto companies since the industry’s early days, with widespread account closures in the United States often described as Operation Chokepoint 2.0. The APPG said several major UK banks have similarly placed restrictions on crypto-related payments, prompting the inquiry to examine the shortage of available bank accounts for crypto firms and related businesses such as insurance providers.

What the Investigation Will Examine

Lawmakers also plan to scrutinize specific banking practices, including blocked payments to certain crypto companies and transfer limits imposed on crypto related transactions. The group wants to determine whether these restrictions are proportionate and how they affect consumers, businesses, competition and innovation in the sector.

Lawmaker Cites Years of Complaints

Vaizey said the group has repeatedly heard from crypto and digital asset businesses over several years about ongoing struggles to access bank accounts and banking services, alongside persistent concerns over transaction restrictions imposed by banks.