'One of the single biggest barriers to growth': UK lawmakers press banks over crypto access ahead of new FCA regime

UK lawmakers are pressing major banks to explain whether the country's upcoming crypto regulatory regime will change how they treat authorized digital asset firms, as part of a broader inquiry into banking access for the sector.

Gurinder Singh Josan CBE MP and Lord Vaizey of Didcot, co-chairs of the Crypto and Digital Assets All-Party Parliamentary Group, wrote to the chief executives of major UK banks and banking service providers on Tuesday. The letter asks lenders to explain their policy approach toward crypto businesses, whether they currently provide them with bank accounts or other banking services, and what regulatory, legal, compliance, commercial, and risk considerations influence those decisions. It also asks banks to disclose any restrictions or limits they place on crypto-related transactions for retail or business customers.

"We have heard of repeated instances where crypto and digital asset firms have struggled to open accounts with UK banks," Josan and Vaizey wrote. "We have similarly heard reports that several banks have introduced restrictions on crypto-related payments and transactions."

The co-chairs warned that limiting access to banking services "could be one of the single biggest barriers to growth for UK crypto and digital asset businesses," including exchanges, custodians, payment firms, wallet providers, tokenization businesses, and stablecoin issuers, and could undermine the success of the UK's crypto regime.

Will FCA authorization change the banks' approach?

The FCA finalized its broader crypto regulatory framework in June, expanding oversight beyond current anti-money laundering and financial promotions rules and requiring firms carrying out regulated crypto activities to obtain authorization under the Financial Services and Markets Act. Applications are due to open on Sept. 30 and run through Feb. 28, 2027. The regime is expected to take effect on Oct. 25, 2027.

The lawmakers specifically asked lenders whether FCA authorization will materially change how such crypto businesses are assessed. They acknowledged banks' obligations to prevent financial crime and protect consumers, but said companies have argued that banking decisions should reflect "a firm's individual risk profile, rather than simply the sector in which it operates."

Indeed, the government has already echoed that sentiment, Josan and Vaizey noted. UK Economic Secretary to the Treasury Lucy Rigby told Parliament earlier this year that, "under the UK's new crypto regime, firms will need to be licensed by the FCA to provide relevant cryptoasset services, and the government would not expect such licensed firms to be subject to restrictions by banking services providers simply because of the sector they belong to."

The letter is part of the APPG's broader inquiry into crypto banking access, launched on July 21, to assess the scale of the problem, its impact on the sector, the factors driving it, and whether further action is needed. The group is seeking evidence from banks, crypto firms, and other stakeholders through Aug. 31 before delivering its findings and recommendations to the UK government.