The co-chairs of the UK Crypto and Digital Assets All-Party Parliamentary Group (APPG), Labour MP Gurinder Singh Josan and Lord Ed Vaizey of Didcot, have written a letter to the CEOs of major UK banks. The letter asks for an explanation regarding their approach to providing banking services to crypto and digital asset businesses.
In the letter, Josan and Vaizey stated they have heard of repeated instances where firms in the crypto and digital asset sectors have struggled to open accounts with UK banks. They also noted that several banks have introduced restrictions on crypto-related payments and transactions.
The APPG stated that access to banking services could be one of the single biggest barriers to growth for UK crypto and digital asset businesses. The group warned that these difficulties could potentially undermine the success of the country's forthcoming crypto regime.
The group expressed concern that limited banking access could make it harder for licensed firms to grow and could impact decisions made by firms considering investing in the UK.
Banking restrictions and transfer limits
HSBC, Nationwide, NatWest, Santander UK, and Starling Bank are among the British banks that have introduced restrictions on crypto-related payments. Research from the UK Cryptoasset Business Council in January found that banks were blocking or delaying an estimated 40% of attempted transfers to crypto exchanges.
Estimated percentage of transfers to crypto exchanges blocked or delayed by banks, according to UK Cryptoasset Business Council research.
HSBC, NatWest, Monzo, and Nationwide reportedly cap monthly transfers to crypto exchanges at between £5,000 and £10,000. Meanwhile, Starling Bank and Chase UK reportedly bar transfers to crypto exchanges outright.
An unnecessary piece of friction
Regulatory outlook and inquiry
In March, UK Economic Secretary Lucy Rigby told Parliament that under the new regime, the Government 'would not expect' FCA-licensed firms to face restrictions from banks 'simply because of the sector they belong to.'
The UK Financial Conduct Authority (FCA) finalized its rules for the crypto sector in June, with the regime becoming mandatory in October 2027. The Crypto and Digital Assets APPG launched an inquiry into banking access on July 21, which is taking written evidence until August 31.
