UK Crypto APPG Presses Major Banks on Crypto Firm Access

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.