U.K. Parliament launches formal inquiry into bank restrictions on crypto firms

The U.K. Parliament's Crypto and Digital Assets All-Party Parliamentary Group opened a formal inquiry this week into systematic restrictions by major U.K. banks on crypto businesses and crypto-related payments, according to CoinDesk. The group, chaired by Ed Vaizey, a former Minister for the Digital Economy, and Gurinder Singh Josan, a Labour MP, is inviting written evidence over a six-week window from banking, payments, fintech, and crypto sectors.

The inquiry focuses on a documented pattern: several major U.K. banks have introduced restrictions including blocking payments to certain crypto firms, imposing transfer limits, and denying bank accounts to crypto businesses. Associated professional services, such as insurance products tailored for crypto firms, are also affected. The phenomenon mirrors what is referred to in the United States as "Operation Chokepoint 2.0," the practice of financial institutions de-risking from entire sectors deemed high-friction or reputationally sensitive.

Ed Vaizey stated in a quote provided to CoinDesk: "Over a number of years, the APPG has heard consistent reports from crypto and digital asset businesses that they face difficulties accessing bank accounts and banking services, alongside concerns about restrictions on crypto-related transactions by banks." The parliamentary group will examine how restrictions are applied, whether they are proportionate, and what impact they have on consumers, businesses, innovation, and competition.

The timing is significant. The U.K. is finalizing a new comprehensive crypto regulatory framework scheduled for implementation in October 2027. The inquiry effectively surfaces a contradiction at the heart of that settlement: regulators are building a framework to legitimize and supervise crypto activities, while the banking system is actively blocking access for firms trying to comply with forthcoming rules.

The APPG will publish findings and recommendations to the U.K. government following the six-week evidence period. The brief does not specify enforcement mechanisms or whether the government has committed to implementing recommendations.

The Bottom Line: Watch for which banks are named in the six-week evidence period and what the APPG recommends by way of government action. If recommendations carry weight with financial regulators or if banks respond with policy changes ahead of the October 2027 framework, this inquiry will have moved from symbolic to operational; absence of bank response would suggest the chokepoint persists despite parliamentary attention.