UK Lawmakers Demand Answers from Banks on Crypto Account Refusals

A group of UK lawmakers has written to major banks in the country, requesting information on their policies regarding crypto and digital asset firms. The letter, signed by Labour MP Gurinder Singh Josan and Lord Vaizey of Didcot, was sent to the chief executives of HSBC, Nationwide, NatWest, Santander, Starling, and other major UK banks.

The lawmakers are seeking answers to six questions regarding the banks' approaches to crypto firms. These include whether they currently serve such businesses, what limits they apply to crypto-related transactions, and what factors drive their approach. The letter also asks if the incoming FCA regime will change their policies and what the Government or regulators could do to help.

The issue of banking access for crypto firms has been a contentious one in the UK. Recent research from the UK Cryptoasset Business Council found that banks are blocking or delaying an estimated 40% of attempted transfers to crypto exchanges. This has led to concerns that limited access to banking services could undermine the success of the UK's forthcoming crypto regime.