UK Lawmakers Press Banks Over Access for Crypto and Digital Asset Firms

UK lawmakers are increasing pressure on banks to explain how they provide services to crypto and digital asset businesses, warning that restrictions on banking access could undermine the country’s emerging regulatory framework for the sector.

The co-chairs of the All-Party Parliamentary Group on Crypto and Digital Assets, Labour MP Gurinder Singh Josan and Lord Vaizey of Didcot, wrote to leaders of British banks on 11 August seeking details of their policies toward digital asset companies. The intervention follows repeated concerns from crypto businesses over difficulties opening or maintaining bank accounts and restrictions on crypto-related payments.

Inquiry examines banking barriers

The APPG formally launched an inquiry into access to banking services on 21 July. Its call for evidence covers access to business bank accounts and related services, restrictions on crypto transactions, the reasons banks impose those controls, and their effect on investment, competition and the UK’s competitiveness.

Written submissions remain open until 31 August 2026. The group plans to publish findings and recommendations after reviewing evidence from the banking, payments, fintech and digital asset sectors.

The issue is becoming more significant as the UK moves toward a broader regulated crypto market. Parliament approved legislation bringing cryptoassets into the financial-services regulatory perimeter in February 2026, while the Financial Conduct Authority published final rules and guidance in June. The new regime is due to commence in October 2027.

Balancing financial-crime controls and market access

Banks have legitimate obligations to manage fraud, money laundering and other financial-crime risks associated with crypto activity. The policy question now being examined is whether restrictions are sufficiently risk-based and proportionate, particularly where businesses are operating within an increasingly formal regulatory framework.

For compliance teams, the debate highlights a broader shift from blanket sector-level risk avoidance toward more granular assessment of individual digital asset businesses, their licensing status, controls, ownership, transaction profile and exposure to higher-risk activities.