UK Lawmakers Investigate Bank Blocks on Crypto Transfers and Account Access

Inquiry targets banking, payments and insurance

The review is being led by the Crypto and Digital Assets All-Party Parliamentary Group, or APPG, shortly after the UK completed a new regulatory framework for the sector. The group is co-chaired by former digital economy minister Lord Vaizey of Didcot and Labour MP Gurinder Singh Josan.

Lawmakers said they will examine access to bank accounts, payment services and insurance for crypto businesses and customers. The inquiry will look at account closures, blocked payments and transfer caps, and consider whether those measures are justified by fraud and financial crime risks.

The APPG also plans to assess the broader effects of such restrictions on consumers, competition, investment and innovation. In a joint statement, Josan and Vaizey said access to banking services is essential for any legitimate business and warned that unnecessary barriers could curb growth and damage the government’s digital asset strategy.

Banks’ crypto restrictions draw scrutiny

Crypto firms have for years reported difficulties opening and keeping bank accounts in the UK. Consumers have also encountered blocked transfers or limits when trying to send money to crypto exchanges.

According to the source article, major lenders including HSBC, Nationwide, Natwest, Santander and Starling Bank have introduced restrictions on some crypto-related payments. The inquiry will test whether those controls are proportionate or whether they are becoming a wider obstacle to operating in the sector.

The issue has also been highlighted by industry research. A January study published by the UK Cryptoasset Business Council estimated that banks were blocking or delaying around 40% of attempted transfers to crypto exchanges. Among the exchanges surveyed, 70% said banking restrictions had affected investment, hiring or expansion plans in the UK.

Government position and next steps

The banking review comes after HM Treasury acknowledged the problem. In March, Economic Secretary Lucy Rigby told Parliament that companies licensed by the Financial Conduct Authority should not face restrictions solely because they operate in crypto.

The APPG said it will accept written evidence for six weeks, with submissions due by Aug. 31. After that, the group plans to publish recommendations to the government.

Lawmakers will also compare the UK approach with policies in the United States, Australia, Hong Kong and the European Union, suggesting the inquiry is intended not only to document domestic problems but also to measure whether Britain is becoming less competitive than other jurisdictions.

What the review could mean

The inquiry arrives before the UK’s new crypto regime becomes mandatory in October 2027. Its conclusions may help answer a broader policy question: whether clearer rules alone are enough to attract digital asset businesses, or whether access to conventional banking services remains the more immediate constraint on the sector’s growth.