UK Lawmakers Press Banks on Crypto Debanking Ahead of New Rules

UK lawmakers are scrutinizing major banks over their treatment of cryptocurrency businesses and transactions in light of the country's new regulatory framework.

The inquiry, led by the Crypto and Digital Assets All-Party Parliamentary Group (APPG), seeks to determine whether banking restrictions will survive the UK's new crypto regime.

Firms warn that losing basic banking access can undermine the value of becoming FCA-authorised, raising questions about the economic benefits of creating a regulated crypto sector if regulated firms cannot reliably access the regulated banking system.

Regulated companies will operate under a full regulatory framework from October 2027, but banks are being asked whether their policies will change in response to this new regime.