UK Crypto Firms Struggle with Banking Access Amid 'Debanking' Concerns
In January 2022, Hayden Adams, the founder of Uniswap, had his bank account closed by JP Morgan without warning or explanation.
This incident was described as 'shadow de-banking' by a former US regulator, suggesting that banks were being pressured to drop crypto-related clients without publicly acknowledging it.
The UK's Crypto and Digital Assets All-Party Parliamentary Group (APPG) has launched an inquiry into the issue of banking access for crypto companies, seeking evidence from businesses on why they struggle to open and maintain bank accounts.
A survey by three industry groups found that only 14% of UK crypto firms had managed to open a major bank account and keep it, while another study estimated that 40% of transactions to top exchanges were blocked or delayed by banks.