UK lawmakers say banks are blocking crypto firms’ access to accounts ahead of new FCA rules

British lawmakers are pressing banks to explain why crypto firms still struggle to get basic banking services, arguing that the problem could slow the sector just as the U.K. prepares to bring new crypto regulations into force next year. For high-risk payment providers, the message is simple: banking access is still a gating item, even before licensing gets interesting.

1. The crypto and digital assets all-party parliamentary group sent a letter to banks after what it called “repeated instances” of crypto companies struggling to open bank accounts. The lawmakers asked lenders to set out their policies on providing services to digital asset businesses.
2. The letter warned that a lack of access to banking services “could be one of the single biggest barriers to growth for UK crypto and digital asset businesses” and could “undermine the success of the UK’s forthcoming crypto regime.” That regime is set to come into force next year under the Financial Conduct Authority.
3. According to the Financial Times, crypto firms have complained for years that opening and maintaining bank accounts in England is too difficult, and that banks also restrict or ban transfers from crypto traders to crypto companies. In other words: even where the business is allowed, the money movement can still be a yes-no maze.
4. Banks say they are acting on fraud and consumer-protection concerns. The FT said lenders point to a proliferation of crypto scams and the risk that retail customers lose large amounts of money because of crypto price volatility. The price of bitcoin and ether is down by about half in the last year, the FT added.
5. Specific banks cited in the report include HSBC, NatWest, Monzo and Nationwide, which place limits on how much customers can send to crypto exchanges. Starling and Chase UK have bans on those transfers, citing consumer protection and anti-fraud measures.

The practical takeaway for PSPs and acquiring teams is that the U.K. crypto opportunity is not just a regulatory question. If the banking layer is still limiting account opening and transfer flow, then merchant onboarding, settlement, and treasury operations remain exposed to the same old bottleneck—just with a newer rulebook on top.