U.K. politicians want to know the extent to which the country’s banks have choked-off cryptocurrency firms by refusing them bank accounts and introducing restrictions on crypto-related payments in a cross-party inquiry kicked off on Tuesday.
The Crypto and Digital Assets All-Party Parliamentary Group (APPG) is chaired by Ed Vaizey, a former Minister for the Digital Economy and a member of the House of Lords, and Gurinder Singh Josan, a Labour MP, according to a press release.
Ever since crypto came into being, difficulties around attaining banking relationships have made life hard for players in the space, with a systematic debanking of firms and individuals, particularly in the U.S. being referred to as “Operation Chokepoint 2.0.”
Several major U.K. banks have also introduced restrictions on crypto-related payments, the APPG said in a statement. As such, the inquiry will focus on a dearth of bank accounts for crypto businesses, including associated professional services such as insurance.
The APPG will also look at restrictions placed by banks on crypto-related transactions, amid concerns that some of the banks have introduced measures such as blocking payments to certain crypto firms, or imposing transfer limits. The inquiry wants to understand how these restrictions are being applied, whether they are proportionate and what impact they have on consumers, businesses, innovation and competition, APPG said.
"Over a number of years, the APPG has heard consistent reports from crypto and digital asset businesses that they face difficulties accessing bank accounts and banking services, alongside concerns about restrictions on crypto-related transactions by banks,” Vaizey said.
The APPG is inviting written evidence from across the banking, payments, fintech and crypto sectors over a six-week call for evidence before publishing a report setting out its findings and recommendations to the government.
CEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11T and RWA perpetual volumes surging to a record $311B.
CEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11T and RWA perpetual volumes surging to a record $311B.
CEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11T and RWA perpetual volumes surging to a record $311B.
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