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The UK Parliament’s Crypto and Digital Assets All-Party Parliamentary Group has launched an official inquiry into why banks refuse to open accounts and stop payments for crypto businesses. Written evidence will be accepted until August 31, when the group aims to publish the FCA’s proposals for crypto legalization before it starts in October 2027. The move tests whether the UK’s desire to become a digital nation can survive the ban on banking.
The inquiry was announced on Tuesday by chair Lord Vaizey of Didcot and Labor MP Gurinder Singh Josan CBE. It covers the complexity of opening and maintaining business accounts, transfer limits, payment blocks, and whether banks enforce proportional restrictions. It will also include the UK and US channels, Hong Kong, Australia, and the European Union.
The APPG made its concerns clear. It also said that crypto and digital companies regularly report difficulties in accessing UK banks. The group added that banking access is essential for legitimate businesses, while unnecessary barriers can limit investment, technology, and long-term growth.
The scope of this issue is still important. Research from UK The Cryptoasset Business Council, published in January 2026, found that around 40% of payments to crypto exchanges were blocked or delayed by UK banks. One platform reported about $ 1 billion in rejected transactions during 2025. Meanwhile, 80% of exchanges have seen an increase in customers, while 70% explained that banking is more difficult than a year ago.
These results are different from what the government said. HM Economic Secretary Lucy Rigby told Parliament in March 2026 that companies with crypto licenses should not face restrictions for operating in the sector. As a result, this research examines why FCA-registered businesses continue to face banking problems despite their progress.
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The inquiry also follows the final FCA crypto policy in the UK. The approval window opens in September 2026, with full compliance expected on October 25, 2027. If licensed companies still struggle to find banks, confidence in the new regulatory framework could be strained.
Meanwhile, comparisons with foreign markets continue to grow. In the United States, the crypto industry has compared the ban on banks to Operation Chokepoint 2.0. Kraken recently raised $22 million from an investor who said it had stopped trading at the time. In Australia, Coinbase has also criticized banks for restrictions on crypto-related services. The APPG will examine how competing jurisdictions have dealt with similar challenges.
The investigation comes at a political moment. Andy Burnham became Prime Minister on Mondaywhen John Healey was appointed Chancellor of the Exchequer. Legal experts say financial firms around the world will be watching closely to see if the new government will provide a stable environment for managing digital assets and financial services.
Entries will be accepted from July 21 to August 31 across banking, payments, fintech, and crypto. The APPG will publish recommendations before the deadline of October 2027. Industry participants are expected to promote risk assessment of events and activities rather than imposing restrictions on FCA-registered crypto companies.
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