Summary
The UK parliamentary pressure on banks over crypto access highlights a long-standing tension between financial crime compliance and the UK's ambition to become a global crypto hub. As the UK prepares to implement its comprehensive FCA crypto regime, lawmakers are questioning whether banks will treat newly licensed crypto firms fairly — or continue restricting them based on sector rather than individual risk profile.
Key Points
- The letter: The Crypto and Digital Assets All-Party Parliamentary Group (APPG), co-chaired by Gurinder Singh Josan MP and Lord Vaizey, wrote to the chief executives of major UK banks asking them to explain their policy approach toward crypto businesses — whether they currently provide them with bank accounts or other banking services, and what regulatory, legal, compliance, commercial and risk considerations influence those decisions.
- The warning: The co-chairs warned that limiting access to banking services "could be one of the single biggest barriers to growth for UK crypto and digital asset businesses," including exchanges, custodians, payment firms, wallet providers, tokenization businesses and stablecoin issuers — and could undermine the success of the UK's crypto regime.
- The banks cited: HSBC, Nationwide, NatWest, Santander UK and Starling Bank were cited as having introduced restrictions on crypto-related payments or transactions.
- The regime context: The FCA finalized its broader crypto regulatory framework in June, requiring firms carrying out regulated crypto activities to obtain authorization under the Financial Services and Markets Act. Applications open Sept 30 and run through Feb 28, 2027; the regime takes effect Oct 25, 2027.
- The key question: Lawmakers specifically asked lenders whether FCA authorization will materially change how such crypto businesses are assessed. They acknowledged banks' obligations to prevent financial crime and protect consumers, but said companies have argued banking decisions should reflect "a firm's individual risk profile, rather than simply the sector in which it operates."
- The government position: UK Economic Secretary to the Treasury Lucy Rigby told Parliament: "under the UK's new crypto regime, firms will need to be licensed by the FCA to provide relevant cryptoasset services, and the government would not expect such licensed firms to be subject to restrictions by banking services providers simply because of the sector they belong to."
- The inquiry: The letter is part of the APPG's broader inquiry into crypto banking access, launched July 21, to assess the scale of the problem, its impact, the factors driving it, and whether further action is needed. The group is seeking evidence from banks, crypto firms and other stakeholders through Aug 31 before delivering findings to the UK government.
- The significance: The issue is a "chokepoint" concern — even with FCA authorization, crypto firms need banking services to hold customer funds, pay staff and operate. The outcome will determine whether the UK's new regime unlocks growth or is undermined by continued banking access barriers, with direct parallels to the "Operation Chokepoint" debate in the US.