The UK All-Party Parliamentary Group on Crypto and Digital Assets launched an inquiry on July 21, 2026, to map out the banking obstacles facing cryptocurrency businesses in Britain. This initiative comes after years of sector reports documenting systematic barriers to essential banking services.
🔑 Key Takeaways
- The APPG launched an inquiry into banking barriers for crypto firms on July 21, 2026
- The call for evidence runs for a six-week period
- NatWest and Santander have imposed restrictions including caps and service refusals
- Chancellor Jeremy Hunt committed to resolving these banking difficulties
- CEX trading volumes surged +15.3% in June to $1.11 trillion
A Systemic Phenomenon Documented for Years
This inquiry follows years of documented banking difficulties for UK crypto businesses. The APPG has received consistent reports indicating that crypto and digital asset companies struggle to obtain bank accounts and basic financial services. The phenomenon, compared to the US « Operation Chokepoint 2.0 », is characterized by widespread denial of banking services or the imposition of disproportionate restrictions on crypto-related transactions.
« Over the years, the APPG has heard consistent reports from crypto and digital asset businesses that they face difficulties accessing bank accounts and banking services, as well as concerns about restrictions on crypto-related transactions imposed by banks. »
Ed Vaizey, Co-chair of the APPG, former Digital Economy Minister
The parliamentary group is co-chaired by Ed Vaizey, former Digital Economy Minister and member of the House of Lords, and Labour MP Gurinder Singh Josan. Their mission: to understand the extent of the problem, assess the proportionality of banking measures, and formulate recommendations for the UK government.
Scope and Methodology of the Inquiry
The APPG inquiry focuses on several key areas. It will examine the lack of available bank accounts for cryptocurrency businesses, including associated professional services such as insurance. It will also analyze restrictions imposed by banks on crypto transactions, including payment blocks to certain crypto businesses or the imposition of transfer limits.
| Bank | Restriction Type | Documented Examples |
|---|---|---|
| NatWest | Service Refusal | Total or partial blocking of services to crypto businesses |
| Santander | caps and Limitations | Transaction limits and transfer restrictions |
The group seeks to understand how these restrictions are applied, whether they are proportionate, and what their impact is on consumers, businesses, innovation, and competition. As part of this process, the APPG launches a six-week call for evidence, inviting the banking, payments, fintech, and crypto sectors to submit written evidence.
Government Commitments and Ongoing Dialogue
This inquiry echoes commitments made by the UK government. Chancellor Jeremy Hunt has pledged to tackle banking barriers faced by cryptocurrency businesses, embracing Prime Minister Rishi Sunak’s vision of making the UK a major hub for crypto assets.
As part of this dialogue, Bim Afolami, the Treasury’s Economic Secretary, is set to meet Lisa Cameron, head of the APPG on crypto assets, to explore the reasons why crypto businesses struggle to obtain banking services. This meeting reflects a governmental willingness to better understand the dynamics at play and find structural solutions.
Parallel House of Lords Inquiry on Stablecoins
In parallel with the APPG inquiry, the House of Lords, through its Financial Services Regulatory Committee, launched its own inquiry into UK stablecoin regulation. The deadline for written evidence submissions is set for March 11, 2026.
« We have launched this inquiry to assess the opportunities and risks that stablecoin growth may present for the UK financial services sector and the wider economy, and to determine whether the regulatory frameworks proposed by the Bank of England and the FCA constitute measured and proportionate responses to these developments. »
Baroness Noakes DBE, Chair of the Financial Services Regulatory Committee
This inquiry will examine the evolution of the global stablecoin market since 2014, comparisons between UK, US, and European markets, and projected growth of sterling-denominated stablecoins. The Committee is evaluating whether the frameworks proposed by the Bank of England and the FCA adequately address the challenges posed by these instruments.
Precedent: The 2022 Inquiry and Its Legacy
The APPG had previously conducted a separate inquiry in 2022 on UK crypto sector regulation, chaired at the time by MP Lisa Cameron. This inquiry covered the UK’s current regulatory approach, the role of regulators including the Bank of England, FCA, and ASA, central bank digital currencies, and consumer protection.
Findings from this 2022 inquiry were submitted to the Treasury Committee, laying the groundwork for broader reflection on the UK crypto ecosystem. The current banking barriers inquiry represents a further step in this ongoing consultation process.
Market Context: Trading Volume Rebound
On the market side, trading volumes on centralized exchanges (CEX) increased for the first time in five months in June, with spot volumes rising by +15.3% to $1.11 trillion. RWA (Real World Assets) perpetual volumes hit a record $311 billion, signaling growing interest in tokenized assets.
Conclusion and Outlook
The APPG inquiry represents a major opportunity for the UK crypto sector to have systemic difficulties formally recognized. If findings confirm the disproportionate nature of banking restrictions, they could fuel broader reflection on how the UK financial system interacts with the decentralized digital ecosystem.
Several scenarios are conceivable: a voluntary framework encouraging banks to clarify their acceptance criteria, regulatory intervention imposing service obligations, or a hybrid approach combining guidance and monitoring. The outcome will largely depend on evidence submitted during the consultation period and the UK government’s political will to make Britain a real rather than merely declared crypto hub.
Sources
- CoinDesk – UK Parliamentary Group Begins Inquiry into Banking Chokepoint for Crypto Businesses
- FX News Group – All-Party Parliamentary Group Launches Inquiry into UK Crypto Industry
- Ledger Insights – House of Lords Launches Inquiry into UK Stablecoin Regulation
- The Block – UK Parliamentary Group Opens Inquiry into Crypto Industry
- Focus Outlook – UK Finance Minister to Meet Crypto APPG Regarding Banking Access
- Evening Standard – UK MPs Inquiry into Bitcoin and Blockchain Regulation
This article is published for informational and educational purposes. It does not constitute investment advice in any form. Conduct your own research (DYOR) before making any decisions.
