UK parliamentary group launches crypto banking access probe

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UK crypto banking access inquiry

Highlights

The Crypto and Digital Assets All-Party Parliamentary Group has launched an inquiry into UK banking barriers facing crypto businesses, citing repeated industry concerns.
The review assesses UK banks' restrictions on crypto accounts and transactions, comparing approaches in the U.S., Hong Kong, Australia and the EU, ahead of new regulations effective Oct. 25, 2027.
Labour's new government under Andy Burnham is refocusing policy by scrapping the digital ID scheme and appointing John Healey as chancellor, with implications for digital infrastructure and financial market reforms.

Inquiry targets banking barriers

According to The Block, the Crypto and Digital Assets All-Party Parliamentary Group, in a statement, says it has opened an inquiry into access to banking services for crypto businesses in the UK. The cross-party group says it wants to examine problems firms face when opening and maintaining bank accounts, as well as limits some banks place on crypto-related transactions.

The APPG, chaired by Lord Vaizey of Didcot and Labour MP Gurinder Singh Josan CBE, says it has heard repeated concerns from crypto and digital asset businesses about difficulties in securing banking services. It says access to banking is fundamental for legitimate businesses and warns unnecessary barriers could hinder growth, investment and innovation.

The review also covers how other jurisdictions, including the U.S., Hong Kong, Australia and the EU, approach similar issues. The group says the work follows the publication of the UK's new crypto regulatory framework and is intended to test whether remaining banking obstacles risk undermining the government's goal of making the UK a global leader in digital assets.

Regulatory and political backdrop

The framework is scheduled to take effect on Oct. 25, 2027, placing the banking access debate within a broader policy shift for the sector. The APPG says now is the right time to assess whether unresolved frictions could weaken the impact of the incoming regime.

The inquiry coincides with a wider political change after Labour Party leader Andy Burnham takes office as prime minister on Monday. Burnham says he plans to scrap the previous government's digital ID scheme and redirect resources toward cost-of-living measures, while industry figures debate whether that risks leaving the UK behind in digital infrastructure.

Stefan Deiss, co-founder and CEO of The Hashgraph Group, says the UK should move away from a single centralized state model for digital identity, but not abandon digital ID altogether. Separately, Burnham names John Healey as chancellor of the Exchequer, and Jonathan Herbst, global head of financial services at Norton Rose Fulbright, says the new finance chief is likely to support predictable delivery of ongoing reforms across capital markets, fintech, digital assets and sustainable finance.

Our earlier coverage of Andy Burnham’s appointment of John Healey as chancellor outlined how the new prime minister reshaped the UK’s top economic team to signal his initial policy direction and reassure markets. We noted that putting Healey in charge of the Treasury immediately focused attention on fiscal rules, public investment priorities and how the government would balance spending pressures alongside cost-of-living commitments.

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