A cross-party parliamentary group in the UK has asked major banks including HSBC and NatWest to explain why crypto businesses are facing restrictions on banking services. The letter, sent by the All-Party Parliamentary Group on Crypto and Digital Assets, follows repeated accounts from industry participants who say crypto firms have struggled to open bank accounts and have faced limits on cryptocurrency-related payments.
The group said restricted access to banking could become the biggest barrier to growth for crypto companies in the UK. It warned that limited banking channels could hinder the expansion of licensed firms, reduce companies’ willingness to invest in the country, and weaken the effectiveness of the UK’s upcoming cryptocurrency regulatory framework. According to CoinDesk, several major British banks have already imposed restrictions on crypto-related payments.
A UK cross-party parliamentary group has written to the chief executives of banks including HSBC and NatWest, asking them to explain their restrictions on banking services for crypto businesses.
The All-Party Parliamentary Group on Crypto and Digital Assets said it has repeatedly heard that crypto firms have struggled to open bank accounts and that banks have placed limits on cryptocurrency payments.
The group said limited banking access could become the biggest obstacle to growth for UK crypto companies. It added that the constraints could affect the expansion of licensed firms, reduce businesses’ willingness to invest in the UK, and potentially undermine the effectiveness of the country’s forthcoming cryptocurrency regulatory framework.
According to CoinDesk, several major banks in the UK have already imposed restrictions on crypto-related payments.
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