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UK Lawmakers Write to Bank CEOs Over Crypto Account Refusals
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- DeepHorus
UK lawmakers have asked major banks to justify refusing accounts for cryptocurrency firms, warning the practice could cripple the country's crypto regime. In a Tuesday letter, Crypto and Digital Assets APPG co-chairs Gurinder Singh Josan and Lord Vaizey demanded answers from bank CEOs. They cited repeated instances of crypto businesses struggling to open accounts.
The co-chairs called limited banking access one of the biggest barriers to growth for UK crypto firms. The letter poses six questions, including whether banks will change their approach under the FCA regime. It also asks what limits banks apply to crypto-related transactions and why.
The letter follows a parliamentary inquiry launched July 21; written submissions remain open until August 31. Research from January found banks blocking or delaying about 40% of attempted transfers to crypto exchanges. HSBC, NatWest, Santander, and Starling cap monthly transfers between £5,000 and £10,000, while Starling and Chase UK bar them outright.
Josan and Vaizey acknowledged banks must prevent financial crime and protect consumers. But they argued decisions should reflect individual risk profiles, not the sector. Vaizey called the difficulties 'an unnecessary piece of friction' for UK businesses.
The government has already conceded the issue. Economic Secretary Lucy Rigby said in March that FCA-licensed firms should not face restrictions simply because of their sector. The FCA finalized its rules in June; the regime becomes mandatory in October 2027.
The problem mirrors U.S. 'Operation Chokepoint 2.0,' with Kraken winning $22 million from an auditor that abandoned it. The APPG plans to report to the government after the August 31 deadline. The outcome could shape crypto banking access across the UK.
