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The UK's Crypto and Digital Assets All-Party Parliamentary Group (APPG) launched a cross-party inquiry on Tuesday into how the country's banks have choked off cryptocurrency firms, with a six-week call for evidence from the banking, payments, fintech and crypto sectors before publishing recommendations to the UK Government.
The inquiry, co-chaired by former UK Digital Economy Minister Lord Vaizey of Didcot and Labour MP Gurinder Singh Josan CBE, is focused on two fronts: the lack of bank accounts available to crypto businesses and associated professional services such as insurance, and restrictions placed by banks on crypto-related payments, including outright blocks on transfers to certain crypto firms and imposed transfer limits.
Why it matters
The APPG has heard consistent reports from crypto and digital asset businesses for years that they face difficulties accessing basic banking services, co-chair Lord Vaizey said. The inquiry will examine whether the restrictions are proportionate and what impact they have on consumers, businesses, innovation and competition. The framing echoes the US debate around "Operation Chokepoint 2.0," where critics argue lenders have used de-risking rules to systematically exclude digital asset firms from the financial system.
Market impact
A parliamentary report in the UK carries political weight even though APPGs sit outside formal lawmaking. Findings here would feed directly into the Treasury and the Financial Conduct Authority's ongoing thinking on how crypto firms get treated under existing banking and payments rules, and could shape future guidance on whether transaction-level restrictions on crypto payments are deemed proportionate. Several major UK banks have already introduced crypto-related payment restrictions, the APPG said, meaning the affected firms are not hypothetical: the inquiry lands on a live, observable policy pain point.
CEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11T and RWA perpetual volumes surging to a record $311B, underscoring the scale of activity that hinges on functioning payment rails.
Frequently asked questions
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What is the UK Crypto and Digital Assets APPG inquiry investigating?
The inquiry is examining whether UK banks are systematically refusing accounts to crypto firms and ancillary services like insurance, and whether restrictions on crypto-related payments, including outright transfer blocks and limits, are proportionate and what impact they have on consumers, businesses, innovation and…
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Who is chairing the inquiry?
It is co-chaired by Lord Vaizey of Didcot, a former UK Government Minister for the Digital Economy, and Labour MP Gurinder Singh Josan CBE, according to a press release from the All-Party Parliamentary Group.
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How long will the inquiry take and what comes next?
The APPG is running a six-week call for evidence from the banking, payments, fintech and crypto sectors, then publishing a report with findings and recommendations to the UK Government.
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What kinds of bank restrictions are under scrutiny?
The APPG specifically called out banks blocking payments to certain crypto firms and imposing transfer limits on crypto-related transactions, alongside the broader dearth of bank accounts for crypto businesses and associated professional services.
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Why does this matter beyond the UK?
The framing mirrors the US "Operation Chokepoint 2.0" debate, where critics argue lenders have used de-risking rules to exclude digital asset firms, and a UK parliamentary report could feed into Treasury and FCA thinking on how crypto firms are treated under existing banking and payments rules.
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