The UK Parliament Launches Major Inquiry into Crypto De-Banking

​The crypto industry has faced massive hurdles in securing basic banking services, and now the UK government is officially stepping in. The UK’s Crypto and Digital Assets All-Party Parliamentary Group (APPG) has just launched a cross-party inquiry to investigate the systemic "de-banking" of crypto businesses and consumers.
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​The Banking Chokepoint
​Despite the UK government's stated ambition to become a global "crypto hub," legitimate digital asset firms are being choked out by traditional banks.

​Widespread Rejections: Major UK banks (including HSBC, NatWest, and Santander) have increasingly refused to open basic business accounts for crypto startups or have heavily restricted their merchant services.

​Blocked Transactions: A recent survey by the UK Cryptoasset Business Council revealed that banks blocked or delayed a staggering 40% of all transactions to crypto platforms. One unnamed exchange even reported nearly £1 billion in legitimate transactions declined over a single year.

​Economic Impact: 70% of surveyed crypto exchanges stated that these banking restrictions directly crippled their ability to hire, invest, or expand their operations within the UK.

​What the Inquiry Aims to Do
​Chaired by Lord Vaizey of Didcot and Labour MP Gurinder Singh Josan, the APPG is demanding answers. The inquiry will collect written evidence from banks, payment providers, and fintech firms until August 31, 2026.
​The core focus is determining whether these blanket bans and transfer limits are a "proportionate" response to fraud and money laundering risks. Lawmakers are investigating if banks are unfairly stifling innovation by refusing to distinguish between high-risk offshore platforms and fully licensed, regulated UK firms.

As the Financial Conduct Authority (FCA) prepares to accept full authorization applications from crypto firms later this year, there is a glaring contradiction: What good is a regulatory license if the banking system treats you as untouchable? If the UK wants to maintain its competitive edge in fintech, resolving this banking bottleneck is absolutely critical.#UKCrypto