UK Launches Inquiry Into Crypto Firms' Banking Access Before 2027 FCA Deadline
Parliamentary group investigates banking barriers ahead of mandatory crypto regulations.
1Banking Barriers in Crypto Sector
The UK Parliament's Crypto and Digital Assets APPG has initiated an inquiry into banks' refusal to open accounts for crypto businesses. Data shows 40% of payments to exchanges were blocked in 2026. The investigation comes ahead of the FCA's mandatory regime taking effect in 2027, marking a crucial step for industry growth.
2Regulation vs Reality Gap
While Treasury officials state licensed crypto firms shouldn't face sector-wide restrictions, FCA-registered companies still struggle with banking access. This contradiction raises questions about the effectiveness of the regulatory framework in practice, despite legislative progress.
3Global Comparisons
The APPG will compare UK's approach with the US, Hong Kong and Australia. Parallels are drawn to US 'Operation Chokepoint 2.0' and Coinbase's criticism of Australian banks. These benchmarks will test UK's ambition to become a global digital asset hub.
4Industry Impact
One platform reported £1 billion in rejected transactions during 2025. 80% of exchanges saw increased customer friction, while 70% described banking conditions as more restrictive than previous years. Such barriers significantly hinder sector innovation and investment.
5Political Transition Context
The inquiry coincides with Andy Burnham becoming Prime Minister and John Healey's appointment as Chancellor. Global financial institutions are closely watching whether the new government can deliver stable regulations for digital assets during this transitional period.
6Pivotal Moment for 2027
APPG's evidence collection until August 31 will inform the FCA licensing process starting September 2026. Industry advocates plan to push for case-by-case risk assessments rather than blanket restrictions on FCA-registered crypto firms ahead of the October 2027 deadline.