UK lawmakers write to bank CEOs over crypto account refusals

The Crypto and Digital Assets All‑Party Parliamentary Group sent a letter on Tuesday to the CEOs of every major UK bank, demanding a clear explanation of why many crypto firms struggle to open accounts and why banks have imposed limits on crypto‑related payments【1】. The move comes as industry groups warn that up to 40% of attempted transfers to exchanges are being blocked, a friction that could deter investment ahead of the FCA’s new crypto regime set to become mandatory in October 2027【1】.

Parliamentary pressure on banks

The APPG’s co‑chairs, Labour MP Gurinder Singh Josan and former digital economy minister Lord Vaizey, outlined six specific questions for each bank, ranging from current policy on crypto clients to whether upcoming regulatory changes will alter their approach【1】. They argue that limited banking access is “one of the single biggest barriers to growth for UK crypto and digital asset businesses” and could influence firms’ decisions on where to locate operations【1】. While banks cite rising crypto‑related scams and the need to protect consumers, they have imposed caps of £5,000‑£10,000 per month on transfers to exchanges or, in some cases, outright bans such as those by Starling and Chase UK【1】.

Context and potential impact

Research from the UK Cryptoasset Business Council in January found that banks were blocking or delaying an estimated 40 % of attempted transfers to crypto exchanges, highlighting a systemic “de‑banking” issue that mirrors concerns raised in the United States under the moniker “Operation Chokepoint 2.0”【1】【2】. HM Treasury’s Economic Secretary Lucy Rigby has already signalled that under the forthcoming FCA regime, “the Government would not expect” FCA‑licensed firms to face banking restrictions solely because of their sector【1】. The APPG’s inquiry, launched on 21 July with written submissions open until 31 August, will feed into a government report that could shape future regulatory guidance and potentially pressure banks to relax caps or bans【1】.

What to watch

• Bank policy disclosures – any public response from the listed banks to the six questions, especially changes to monthly transfer limits.
• FCA regime rollout – the October 2027 mandatory start date and any interim guidance that may affect banking relationships.
• Transfer blockage rates – updates from the UK Cryptoasset Business Council on the proportion of blocked crypto transfers.

The letters underscore a growing tension between the UK’s ambition to become a crypto‑friendly hub and banks’ risk‑averse stance amid fraud concerns. How banks adjust their policies before the FCA regime takes effect will be a key determinant of the sector’s ability to attract and retain firms in the UK.