UK Parliament begins inquiry into banking chokepoint for crypto businesses
The UK’s Crypto and Digital Assets All-Party Parliamentary Group has launched an inquiry into the systemic difficulties crypto businesses face when attempting to access banking services. The investigation will examine how banks apply transaction restrictions and account denials to determine their impact on innovation and market competition.
Why it matters
This inquiry represents a critical regulatory step in the UK to address the 'debanking' of crypto firms, which could lead to formal policy recommendations that either ease or formalize banking barriers for the digital asset industry.
The UK’s Crypto and Digital Assets All-Party Parliamentary Group (APPG) is chaired by Lord Vaizey of Didcot, the former UK Government Minister for the Digital Economy, and Labour MP Gurinder Singh Josan CBE, 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 UK 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.
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