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The Crypto and Digital Assets All-Party Parliamentary Group said Tuesday it will examine the challenges crypto firms face in accessing banking services in the UK. The inquiry lands weeks after the government published its long-awaited crypto regulatory framework, which takes effect in October 2027.
The timing also coincides with Andy Burnham's Labour government taking office on Monday, replacing the previous administration mid-cycle. Parliamentary inquiries rarely bind ministers, but APPG reports feed directly into the legislative drafting process, and a banking-access probe is one of the few areas where Parliament can move faster than the regulator.
Why it matters
Crypto firms in the UK have long complained that high-street banks refuse to serve them, citing anti-money-laundering risk even when the firms are fully FCA-registered. That de-risking has pushed volume offshore and slowed institutional onboarding despite London positioning itself as a pro-crypto hub.
Market impact
An APPG finding that bank de-risking is harming legitimate firms would give Treasury and the FCA political cover to issue joint guidance to lenders. For UK-domiciled crypto businesses, the practical prize is a stable payments rail; for the broader sector, it is a template other G7 jurisdictions will be watching.
Frequently asked questions
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What is the UK Crypto and Digital Assets APPG?
It is an All-Party Parliamentary Group in Westminster that brings together MPs and peers across parties to examine policy questions around crypto and digital assets. APPG inquiries do not bind ministers but feed into legislative drafting.
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Why are UK banks closing crypto firm accounts?
High-street lenders have cited anti-money-laundering and sanctions risk, even when the crypto firm is fully FCA-registered. The practice, known as de-risking, has been a long-running complaint from the UK crypto sector.
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When does the UK crypto regulatory framework take effect?
The framework published earlier this year is set to take effect in October 2027, giving firms a multi-year transition window to align operations with the new rules.
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What changed with the new Labour government under Andy Burnham?
Andy Burnham's Labour Party took office on Monday, replacing the previous administration. The transition brings fresh ministerial teams at HM Treasury and across the regulatory brief relevant to crypto policy.
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What would a successful inquiry achieve for crypto firms?
A finding that de-risking is harming legitimate firms would give the Treasury and FCA political cover to issue joint guidance to banks, potentially unlocking stable payments access for FCA-authorised crypto businesses.
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