UK Lawmakers Investigate Banking Barriers for Crypto Businesses

A cross-party group of UK lawmakers has launched an inquiry into banking difficulties faced by crypto and digital asset businesses, which they claim may hinder growth and innovation in the sector.

The Crypto and Digital Assets All-Party Parliamentary Group (APPG), co-chaired by Lord Vaizey of Didcot and Labour MP Gurinder Singh Josan, will examine why firms struggle to open accounts and why banks restrict crypto-related payments.

According to research published in January, UK banks blocked or delayed an estimated 40% of transfers to crypto exchanges, with 70% of exchanges surveyed saying the restrictions hurt investment, expansion, or hiring in the UK.

The APPG's inquiry will also look abroad at how other countries, such as the US, Hong Kong, Australia, and the European Union, have handled crypto banking access for lessons that might shape UK policy.