U.K. lawmakers have asked major banks whether the country’s impending crypto regulatory framework will change how they serve licensed digital asset firms, escalating a parliamentary inquiry into whether banking policies are constraining the sector’s growth.
Lawmakers Press Banks on Access for Regulated Crypto Firms
Members of Parliament have requested details from leading lenders on their current and planned approaches to onboarding, payment limits, and account services for crypto companies that fall under U.K. regulation. The questions center on whether banks will review blanket restrictions, reassess risk appetite, and align internal policies with the forthcoming rules aimed at bringing more crypto activities within the regulatory perimeter.
The move follows longstanding complaints from digital asset businesses about difficulties securing and maintaining basic banking services. Firms have cited account closures, payment frictions, and transaction caps as barriers that make it harder to operate domestically and serve U.K. customers.
Focus of the Parliamentary Inquiry
The inquiry is examining whether banking access policies—implemented in the name of anti-money laundering, fraud prevention, and consumer protection—are proportionate and evidence-based. Lawmakers are seeking to determine whether restrictions are targeted at higher-risk activities or amount to sector-wide prohibitions that inhibit competition and innovation.
As part of the review, banks have been asked to explain how they apply risk-based assessments to crypto clients, what factors drive enhanced due diligence, and what conditions would prompt changes to onboarding or payment policies once new rules take effect.
Regulatory Backdrop
The U.K. is advancing a framework to regulate a broader set of cryptoasset activities, building on measures already in force such as financial promotions rules. The forthcoming regime is intended to place more crypto businesses under direct oversight of national regulators, with the aim of improving market integrity, consumer safeguards, and financial crime controls.
Policymakers have emphasized the need for proportionate supervision and a risk-based approach to compliance. Against that backdrop, the inquiry is testing whether regulated firms will gain more predictable access to essential banking services once the new rules are implemented.
What Comes Next
Lawmakers are expected to review bank responses, gather further evidence, and consider hearings with industry and regulatory stakeholders. The findings could inform recommendations to the government and supervisors on how to balance financial crime controls with fair access to payment rails and basic account services for compliant crypto businesses.