British lawmakers from the Crypto and Digital Assets APPG have challenged major UK banks over their refusal to service cryptocurrency firms. In an August 11, 2026 letter, co-chairs Gurinder Singh Josan and Lord Vaizey demanded explanations for account denials and transaction curbs. Lawmakers warn these restrictions act as a major barrier to growth, threatening to drive firms to rival hubs like Singapore and Switzerland, and potentially undermining the UK's upcoming FCA regulatory regime.
UK bank crypto account denials
- ▪UK cryptocurrency and digital asset firms have repeatedly struggled to open bank accounts and have faced restricted payments from major commercial banks.
- ▪UK banks cite regulatory uncertainty, anti-money laundering risks, and retail customer fraud losses as reasons for restricting services to the cryptocurrency sector.
APPG letter to bank CEOs
- ▪The UK Parliament's Crypto and Digital Assets All-Party Parliamentary Group wrote to major UK bank chief executives on August 11, 2026, demanding explanations for crypto firm account denials.
- ▪The All-Party Parliamentary Group's letter poses six questions to UK banks regarding their crypto policies, transaction limits, and potential changes under the incoming regulatory regime.
- ▪The letter to UK bank chief executives was sent by Labour MP Gurinder Singh Josan and Lord Vaizey of Didcot, co-chairs of the All-Party Parliamentary Group.
Parliamentary inquiry into banking access
- ▪The All-Party Parliamentary Group launched an inquiry into crypto banking access on July 21, 2026, and is accepting written submissions until August 31, 2026.
- ▪The All-Party Parliamentary Group's inquiry into crypto banking access aims to report its findings directly to the UK Government.
Bank transaction limits on crypto
- ▪A January 2026 study by the UK Cryptoasset Business Council found that UK banks blocked or delayed approximately 40% of attempted transfers to crypto exchanges.
- ▪Major UK banks including HSBC, NatWest, Monzo, and Nationwide cap monthly customer transfers to cryptocurrency exchanges at between £5,000 and £10,000.
- ▪UK banks Starling and Chase UK bar customer transfers to cryptocurrency exchanges outright.
FCA regulatory framework rollout
- ▪The Financial Conduct Authority finalized its landmark crypto rules in June 2026, with the mandatory regulatory regime scheduled to take effect in October 2027.
- ▪Economic Secretary Lucy Rigby stated in March 2026 that the UK Government does not expect banks to restrict FCA-licensed firms solely due to their sector.
Industry relocation risk
- ▪Lawmakers warn that banking service denials could force digital asset firms to relocate to more crypto-friendly jurisdictions like Singapore, Switzerland, or the United States.
- ▪The All-Party Parliamentary Group warns that restricted banking access is a major barrier to growth that could undermine the UK's goal of becoming a global crypto hub.
Story comments
Loading comments…