Summary
UK lawmakers are pressing major banks to explain whether the country's upcoming crypto regulatory regime will change how they treat authorized digital asset firms, as part of a broader inquiry into banking access for the sector. 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.
Key Facts
- APPG co-chairs Gurinder Singh Josan and Lord Vaizey wrote to CEOs of major UK banks on Tuesday
- Letter asks lenders to explain policy toward crypto businesses, whether they provide accounts, and restrictions on crypto transactions
- Warns limited banking access "could be one of the single biggest barriers to growth for UK crypto and digital asset businesses"
- Covers exchanges, custodians, payment firms, wallet providers, tokenization businesses, stablecoin issuers
- Banks cited as restricting crypto-related payments: HSBC, Nationwide, NatWest, Santander UK, Starling Bank
- Part of APPG's broader inquiry into crypto banking access, launched July 21
- FCA finalised broader crypto regulatory framework in June; authorization applications open Sept 30–Feb 28, 2027; regime takes effect Oct 25, 2027
- Economic Secretary Lucy Rigby: government "would not expect...licensed firms to be subject to restrictions by banking services providers simply because of the sector they belong to"
- Group seeking evidence through Aug 31 before delivering findings to UK government
Why It Matters
The UK parliamentary pressure on banks over crypto access highlights a long-standing tension between financial crime compliance and the country's ambition to become a global crypto hub. As the UK prepares to implement its comprehensive FCA crypto regime (effective Oct 2027), lawmakers are questioning whether banks will treat newly licensed crypto firms fairly — or continue restricting them based on sector rather than individual risk profile. The issue is a "chokepoint" concern: even with FCA authorization, crypto firms need banking services to hold customer funds, pay staff and operate. For the fintech and crypto sector, the outcome will determine whether the UK's new regime actually unlocks growth or is undermined by continued banking access barriers — a question with direct parallels to the "Operation Chokepoint" debate in the US.