UK Lawmakers Write to Bank CEOs Over Crypto Account Refusals

The letter puts six questions to each bank: what its policy is, whether it currently serves crypto firms and why not if it does not, what limits it applies to crypto-related transactions, what factors drive that approach, whether the incoming regime will change it, and what the Government or regulators could do to help.

Josan and Vaizey said they accept that banks have legal obligations to prevent financial crime and protect consumers, but noted that many firms argue decisions should reflect a company's individual risk profile more than the sector it sits in. Vaizey told the Financial Times that the difficulties amounted to "an unnecessary piece of friction" in running a business, and counted among the obstacles facing anyone setting up a firm in the UK.

UK banks including HSBC, Nationwide, NatWest, Santander and Starling have curbed crypto-related payments in recent years, with research from the UK Cryptoasset Business Council in January finding that banks were blocking or delaying an estimated 40% of attempted transfers to crypto exchanges.

Banks point to a rise in crypto-related scams and the risk of retail customers losing large sums to volatile prices, according to the FT, which reported that HSBC, NatWest, Monzo and Nationwide cap monthly transfers to crypto exchanges at between £5,000 and £10,000, while Starling and Chase UK bar them outright. Crypto losses are not covered by the Financial Services Compensation Scheme.

What the Government has said

HM Treasury has already conceded the problem, with Economic Secretary Lucy Rigby telling Parliament in March that under the new regime the Government "would not expect" FCA-licensed firms to face restrictions from banks "simply because of the sector they belong to."

The letter follows the APPG's inquiry into banking access, launched July 21, which is taking written evidence until August 31 before reporting to Government. The co-chairs said the letter is not intended to pre-empt those findings. The FCA finalized its rules for the sector in June, with the regime becoming mandatory in October 2027.

Crypto debanking has been contested in other markets, with U.S. firms blaming a pressure campaign they call Operation Chokepoint 2.0 for cutting their banking ties, and Kraken winning $22 million from an auditor it said abandoned it during the episode.