UK MPs have opened a wide‐ranging inquiry into whether high street banks are unfairly shutting out cryptocurrency companies from basic banking services and blocking or limiting crypto‐related payments.
The cross‐party probe, launched by Parliament’s Crypto and Digital Assets All‐Party Parliamentary Group (APPG), will examine claims that legitimate digital asset businesses are struggling to open and maintain bank accounts and are facing increasingly tight controls on transactions.
Lawmakers say the review could help determine whether current banking practices are stifling innovation and competition in one of the UK’s fastest‐growing financial sectors.
Six‐week evidence call to banks and crypto industry
In a statement released on Tuesday, the APPG said it was inviting written evidence over a six‐week period from banks, payment providers, fintechs, crypto firms and other interested parties.
The group plans to publish a report setting out its findings and recommendations to government once the consultation closes.
Chaired by former digital economy minister Lord Vaizey of Didcot and Labour MP Gurinder Singh Josan CBE, the cross‐party body said it wants to assess whether banks’ current risk controls are “proportionate” and to identify any unintended consequences for consumers, businesses and the broader market.
The inquiry will not be limited to crypto companies. It will also seek input from the banking and payments sectors on how they assess risks linked to digital assets and whether their policies remain appropriate as regulation evolves.
Banks accused of denying services and blocking payments
Access to banking has long been one of the crypto industry’s most persistent grievances in the UK and overseas.
The APPG said it will investigate reports that crypto firms have had applications for bank accounts rejected or have seen existing accounts closed. It will also review evidence that firms providing services to the sector – such as insurers and other professional advisers – have run into similar obstacles.
The group will examine restrictions imposed by several major UK banks on crypto‐related payments, including:
– Blocking transfers to certain digital asset platforms
– Capping the size or frequency of payments involving crypto businesses
MPs say they want to understand how such measures are being applied in practice, whether they are properly calibrated to the risks banks are managing, and what impact they may be having on innovation, competition and retail customers.
Lord Vaizey said the APPG had received consistent accounts over a number of years from crypto and digital asset companies describing problems accessing bank accounts and services, alongside concerns about curbs on crypto‐linked transactions.
UK seeks to avoid a repeat of US ‘Operation Chokepoint 2.0’
Difficulties securing banking services have surfaced in multiple jurisdictions.
In the United States, allegations that regulators and banks collectively discouraged institutions from serving crypto clients became widely known in the industry as “Operation Chokepoint 2.0”. Industry participants alleged that lawful companies were effectively pushed out of the banking system by regulatory pressure – a characterisation US regulators have disputed.
The APPG has not drawn a direct comparison with the US, but MPs acknowledge that access to banking has become a recurring concern among digital asset businesses operating in Britain.
By collecting evidence from financial institutions, payment providers and crypto firms, Parliament is seeking to establish whether similar patterns exist in the UK and whether current practices are creating unnecessary barriers for legitimate companies.
Inquiry comes amid broader UK digital asset push
The probe is taking place as the UK accelerates work on a regulatory framework for digital assets, including initiatives on stablecoins and tokenised financial markets.
Earlier this month, Chancellor Rachel Reeves announced that the government intends to issue its first Digital Gilt Instrument (DIGIT) by early 2027, which would make the UK the first G7 state to launch a sovereign bond using distributed ledger technology.
The sterling‐denominated bond is due to be issued via HSBC’s Orion blockchain platform within the Bank of England and Financial Conduct Authority’s Digital Securities Sandbox. Officials say the pilot will test whether distributed ledger technology can speed up settlement, cut reconciliation work and reduce operational costs in the government bond market.
The banking inquiry also follows a joint UK‐US policy statement on stablecoins and tokenised finance released through the Transatlantic Taskforce for Markets of the Future. Both governments agreed that well‐regulated stablecoins could support cross‐border payments, financial market infrastructure and capital markets, and set out shared principles such as:
– One‐to‐one backing with high‐quality liquid assets
– Segregation of reserves from company funds
– Timely redemption rights for holders
– Clear legal protections in insolvency
The framework does not create mutual recognition between the UK and US, but signals that both are moving in a similar regulatory direction on digital money.
Political scrutiny of crypto intensifies
The inquiry comes amid heightened political debate over the role of cryptocurrencies in public life.
Earlier this month, Labour MPs proposed making a temporary ban on cryptocurrency donations to political parties permanent, following Nigel Farage’s resignation as an MP during investigations into multimillion‐pound gifts linked to crypto industry figures.
According to earlier reporting by The Guardian, Labour MPs argued that tighter rules would bolster safeguards against political influence from wealthy donors, while Farage denied wrongdoing and said the benefits under review complied with parliamentary disclosure rules.
Although the APPG has no law‐making powers and its conclusions will not immediately change the legal framework, its report is expected to feed into discussions between ministers, regulators and the banking sector as the UK shapes its future approach to digital assets and financial services.
