UK Lawmakers Challenge Major Banks Over Denial of Services to Cryptocurrency Firms

Aug 11, 2026

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.