A cross-party inquiry is examining whether bank limits and blocked transfers are undermining crypto firms, consumers and investment as the UK moves toward mandatory digital-asset rules in 2027.
A UK parliamentary digital assets group has opened a six-week call for evidence on whether crypto businesses and consumers are facing excessive banking restrictions, an issue lawmakers say could weaken the country’s push to become a digital-asset hub. The inquiry by the Crypto and Digital Assets All-Party Parliamentary Group will examine access to bank accounts, payment services and insurance, as well as whether transfer limits and transaction blocks are proportionate to fraud and financial crime risks. The APPG, co-chaired by former digital economy minister Lord Vaizey of Didcot and Labour lawmaker Gurinder Singh Josan, said submissions close on Aug. 31 and that it will publish recommendations before the UK’s new crypto regime becomes mandatory in October 2027. The review will compare the UK’s approach with the United States, Australia, Hong Kong and the European Union. Major lenders including HSBC, Nationwide, Natwest, Santander and Starling Bank have introduced restrictions on some crypto-related payments. Research published in January by the UK Cryptoasset Business Council estimated that banks were blocking or delaying about 40% of attempted transfers to crypto exchanges, while 70% of exchanges surveyed said banking restrictions had affected investment, hiring or expansion plans in the UK. HM Treasury Economic Secretary Lucy Rigby told Parliament in March that firms licensed by the Financial Conduct Authority should not face restrictions solely because they operate in the crypto sector. The inquiry also follows recent recommendations from the UK-U.S. Transatlantic Taskforce for Markets of the Future aimed at strengthening cooperation on digital assets, stablecoins and tokenization.