UK Crypto Inquiry Targets Tier-1 Banks Over De-Risking Policies

The UK's Crypto & Digital Assets All-Party Parliamentary Group (APPG) has launched an inquiry into tier-1 banks' blanket de-risking policies, which are forcing regulated crypto-native firms and PSPs to rely on secondary offshore rails.

The APPG is co-chaired by Lord Vaizey of Didcot and Gurinder Singh Josan MP, who argue that systemic account denials and transaction blocks threaten to undermine London's ambition to operate as a global digital asset hub.

FCA consumer research indicates that 12% of UK adults own crypto assets, but institutional access to underlying fiat settlement rails remains tightly restricted due to financial institutions' claims of AML, CTF, and financial crime compliance costs.