UK Lawmakers Probe Banking Restrictions on Crypto Firms

UK lawmakers have launched an inquiry into banking practices towards crypto firms, citing concerns over access to financial services as a significant barrier to growth. The Crypto and Digital Assets All-Party Parliamentary Group has written to major British banks seeking details about their treatment of crypto businesses.

The group, led by Labour MP Gurinder Singh Josan and Lord Vaizey of Didcot, wants to know whether banks currently provide accounts to crypto firms and why applications may be refused. They also requested information on restrictions placed on payments involving digital asset platforms.

The inquiry comes as several UK banks have introduced limits or outright bans on transfers to crypto exchanges, citing concerns around fraud and customer protection. Research suggests that up to 40% of attempted transfers are blocked or delayed.