The UK's Crypto and Digital Assets APPG has written to the CEOs of all major British banks, asking them to explain their treatment of crypto and digital asset firms. Co-chairs Gurinder Singh Josan and Lord Vaizey of Didcot signed the letter, which poses six questions about banks' current policies, whether they serve crypto firms, restrictions on related transactions and what determines those decisions. The group also asked whether banks will adjust their practices after the FCA's regulatory regime takes effect. The letter highlights that many crypto firms still struggle to open UK bank accounts, with some banks restricting payments. It follows a parliamentary inquiry into banking access launched on July 21, with written evidence accepted until August 31. A January survey by the UK Cryptoasset Business Council estimated that around 40% of transactions to crypto exchanges are blocked or delayed by banks. HSBC, NatWest, Monzo and Nationwide cap monthly transfers to crypto exchanges at £5,000 to £10,000, while Starling and Chase UK ban such transfers entirely. Economic Secretary Lucy Rigby said the government does not want FCA-regulated firms to face banking restrictions solely because of their industry. The FCA finished its rules in June; the regime becomes mandatory in October 2027.
The UK parliament's Crypto and Digital Assets APPG has written to the chief executives of every major British bank, demanding answers on how they treat crypto and digital asset firms. The letter carries the signatures of both co-chairs, Gurinder Singh Josan and Lord Vaizey of Didcot.
Six questions, one core concern
The letter puts forward six questions spanning banks' current policies, whether they provide services to crypto firms, restrictions on related transactions and the factors behind those decisions. It also asks whether banks plan to shift their approach once the Financial Conduct Authority's (FCA) regulatory regime goes live. The APPG points out that many crypto firms still find it hard to open UK bank accounts, and that some banks also restrict associated payments.
Survey puts blocked or delayed transfers at 40%
The letter follows a parliamentary inquiry into banking access launched on July 21. Written submissions are being accepted until August 31. A January survey by the UK Cryptoasset Business Council estimated that banks block or delay around 40% of transfers destined for crypto exchanges.
Mixed picture across major banks
Enforcement varies from bank to bank. HSBC, NatWest, Monzo and Nationwide cap monthly transfers to crypto exchanges at between £5,000 and £10,000, while Starling and Chase UK refuse such transfers altogether.
FCA regime set to become mandatory in October 2027
Economic Secretary to the Treasury Lucy Rigby has said the government does not want FCA-regulated firms to be hit with banking restrictions purely because of the sector they operate in. The FCA completed its related rules in June; the new regime is scheduled to be mandatory from October 2027.
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