UK lawmakers question lenders over lack of banking for the country’s crypto firms
UK lawmakers from the Crypto and Digital Assets All-Party Parliamentary Group have sent a letter to major banks demanding an explanation for the systematic denial of banking services to crypto firms. The group warns that these restrictions, which include payment blocks by lenders like HSBC and NatWest, could stifle the growth of the UK's digital asset sector and undermine upcoming regulatory frameworks.
Why it matters
Banking access is a critical bottleneck for the crypto industry; if firms cannot secure accounts, the UK risks losing its competitive edge as a global hub for digital asset innovation.
The “Dear CEO” letter, signed by co-chairs of the Crypto and Digital Assets All-Party Parliamentary Group (APPG), Gurinder Singh Josan and Ed Vaizey, asked banks to explain their approach to providing banking services to U.K. crypto and digital asset businesses.
“We have heard of repeated instances where crypto and digital asset firms have struggled to open accounts with U.K. banks. We have similarly heard reports that several banks have introduced restrictions on crypto-related payments and transactions,” Josan, a Labour MP, and Vaizey, a Conservative peer, wrote in the letter.
British banks that have introduced restrictions on crypto-related payments include HSBC, Nationwide, NatWest, Santander UK and Starling Bank.
Ever since crypto came into being, difficulties around attaining banking relationships have made life hard for industry participants, with the systematic debanking of firms and individuals, particularly in the U.S., being referred to as “ Operation Chokepoint 2.0 .”
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