UK parliamentary group opens inquiry into banking barriers facing crypto firms

A UK parliamentary group has launched an inquiry into whether crypto businesses and consumers face restrictions in banking access, including account opening and crypto-related transactions. For PSPs and banks touching this segment, the question is not abstract: the group says it will look at investment, competition and economic growth, and whether the restrictions are proportionate.

1. On Monday, the Crypto and Digital Assets All-Party Parliamentary Group (APPG) said it would examine banking restrictions on crypto firms and consumers, with a focus on account access and limits on crypto-related transactions.
2. The APPG said the inquiry will assess how those restrictions affect investment, competition and economic growth in the UK, and whether they are proportionate.
3. Written submissions from banks, payment providers, crypto firms and other stakeholders are open until Aug. 31. After that, the group plans to publish its findings and recommendations.
4. A January survey by the UK Cryptoasset Business Council found that 10 crypto exchanges said banks blocked or delayed 40% of transactions to crypto platforms. The same survey said 70% of respondents felt the restrictions had reduced their willingness to invest, expand or hire in the UK.
5. The inquiry comes before the Financial Conduct Authority begins accepting authorization applications from crypto firms on Sept. 30, which makes banking access a practical issue before the licensing process even starts.