UK Parliament launches investigation: crypto firms blocked from entry by banks; FCA authorizes opening applications by the end of September to clear obstacles

The UK Parliament’s cross-party Parliamentary Group (APPG) has officially launched an investigation to examine whether crypto companies and consumers face barriers to banking services. The investigation will cover account access, transaction delays, and how these restrictions affect investment, competition, and economic growth. The deadline for written submissions is August 31, and the FCA authorization programme is set to launch by the end of September.
(Background recap: [UK | Risk Warning] The UK financial regulator sent letters to major banks, warning of risks from cryptocurrencies)
(Additional background: Anti-money laundering | UK think tank RUSI survey report: Financial institutions and the government clearly “lack trust” in cryptocurrencies)

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• Investigation background: bank-delayed transactions, declining crypto companies’ investment appetite
• The FCA authorization programme launches at the end of September—timing aligns
• Comparison with Asia: the same banking problem, different solutions

On Monday, the UK Parliament’s cross-party Parliamentary Group (Crypto and Digital Assets APPG) announced that it has officially launched an investigation into barriers in banking services for the cryptocurrency industry. The group will examine whether crypto companies and consumers face difficulties accessing accounts and face transaction restrictions, and will assess how these restrictions affect investment, competition, and economic growth.

According to the APPG’s official announcement, this investigation will collect written materials from banks, payment institutions, crypto companies, and stakeholders, with a submission deadline of August 31, 2026. The group will then publish the results of the investigation and policy recommendations.

Investigation background: bank-delayed transactions, declining crypto companies’ investment appetite

The UK Cryptoasset Business Council (UKCBC) provided quantitative evidence in its survey report published in January. The report said that 10 crypto exchanges stated that banks blocked or delayed 40% of transactions directed to crypto platforms. 70% of respondents said these restrictions reduced their willingness to invest in, expand within, or hire employees in the UK.

This means that although the UK crypto market is expanding, the underlying banking infrastructure is still largely dominated by passive screening. Banks have not explicitly excluded crypto companies, but in practice, transaction delays and account restrictions have already affected the pace of expansion for the industry.

The FCA authorization programme launches at the end of September—timing aligns

The timing of this investigation aligns with the UK Financial Conduct Authority’s (FCA) crypto authorization plans. The FCA will officially begin accepting authorization applications from crypto companies by the end of September. Clarifying banking service barriers before then can help new crypto companies understand potential operating costs.

This investigation also echoes trends in the UK crypto industry: a shift from an “unrestricted free market” to a “structured regulatory framework.” The APPG’s investigation aims to ensure that banking services do not become an invisible barrier to the crypto industry, while the FCA’s authorization programme sets clear entry standards for the industry.

Comparison with Asia: the same banking problem, different solutions

Experience in Asian markets shows that barriers in banking services are not unique to the UK. In April, the Hong Kong Monetary Authority and the Securities and Futures Commission held crypto-friendly meetings to help crypto companies open bank accounts. By contrast, this time the UK is following the standard “investigation → recommendations → policy” route—more rigorous in its steps, but also slower.

In any case, this investigation provides the UK crypto industry with an opportunity for a systematic review of banking barriers. If the investigation results can drive policy improvements, the UK crypto market’s growth trajectory may become smoother.