UK parliamentary group probes banking barriers for crypto firmsA UK parliamentary group launched an inquiry into banking restrictions on crypto firms and consumers, including their impact on investment and competition.
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A UK parliamentary group called the Crypto and Digital Assets All-Party Parliamentary Group (APPG) has initiated an inquiry into banking restrictions affecting crypto firms and consumers. The inquiry aims to examine whether these barriers, such as difficulties in account access and limitations on crypto-related transactions, impede investment, competition, and overall economic growth. The APPG will evaluate if the restrictions imposed by banks and payment providers are proportionate to the risks involved.
The group is currently soliciting written submissions from banks, payment providers, crypto companies, and other stakeholders until August 31. Following this consultation, the APPG plans to publish its analysis and recommendations regarding the banking challenges faced by the cryptocurrency sector in the UK. This inquiry is significant as it addresses concerns about potential obstacles hindering the development of the UK crypto market.
A relevant survey from January by the UK Cryptoasset Business Council highlighted that 10 crypto exchanges reported banks blocking or delaying 40% of transactions to crypto platforms. Moreover, 70% of the survey respondents indicated that such banking restrictions had dampened their willingness to invest, expand, or hire within the UK, underlining the tangible negative impact on the industry. This parliamentary investigation precedes the Financial Conduct Authority's plan to start accepting authorization applications from crypto firms on September 30, a key regulatory milestone for the sector.