A UK parliamentary group launched an inquiry into banking restrictions on crypto firms and consumers, including their impact on investment and competition.
[Update: July 21, 2026, 10:30 AM UTC: Added comments from Yuriy Brisov, a partner at London-based consultancy firm Digital & Analogue Partners.]
A United Kingdom parliamentary group has launched an inquiry into whether crypto businesses and consumers face barriers to banking services, including account access and restrictions on crypto-related transactions.
On Monday, the Crypto and Digital Assets All-Party Parliamentary Group (APPG) said that it would examine how the restrictions affect investment, competition and economic growth. The group said it would assess whether the restrictions are proportionate.
Written submissions from banks, payment providers, crypto firms and other stakeholders are open until Aug. 31, after which the group plans to publish its findings and recommendations.
A January survey by the UK Cryptoasset Business Council (UKCBC) found that 10 crypto exchanges said banks blocked or delayed 40% of transactions to crypto platforms. According to the survey, 70% of respondents said the restrictions had reduced their willingness to invest, expand or hire in the UK.
The UKCBC survey included Coinbase, Kraken, Gemini, OKX, Bitpanda, Luno, Uphold, Wirex, Zumo and Xapo Bank. Eight of the 10 respondents reported an increase in customers experiencing blocked or limited transfers over the previous year. Seven described the UK banking environment for digital asset businesses as becoming more “hostile.”
An unnamed exchange said it observed nearly 1 billion British pounds (about $1.35 billion) in transactions declined by banks over a year. The figure covered rejected card payments and transfers initiated through open banking. Transactions that were abandoned or blocked through other channels were excluded.
Related: London Stock Exchange eyes overnight trading launch in 2027: FT
The UKCBC called on the Financial Conduct Authority (FCA) to require banks to distinguish between exchanges based on their regulatory status, governance and fraud controls instead of applying the same restrictions to every platform.
Yuriy Brisov, a partner at London-based consultancy firm Digital & Analogue Partners, told Cointelegraph that banks have legitimate obligations to manage fraud and money-laundering risks, but said their controls should distinguish between cases by risk levels.
“Proportionality has a simple test. Does the measure distinguish a high-risk case from a low-risk one? These measures do not,” Brisov said.
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