APPG Targets UK Bank Debanking of Crypto Firms Before 2027 FCA Deadline
The UK Parliament’s Crypto and Digital Assets All-Party Parliamentary Group has launched a formal inquiry into why banks refuse to open accounts and block payments for crypto businesses. Written evidence will be accepted until August 31, while the group aims to publish recommendations before the FCA’s mandatory crypto regime begins in October 2027. The move tests whether the UK’s ambition to become a global digital asset hub can survive banking restrictions.
The inquiry was announced on Tuesday by co-chairs Lord Vaizey of Didcot and Labor MP Gurinder Singh Josan CBE. It covers difficulties opening and maintaining business accounts, transfer limits, payment blocks, and whether banks apply restrictions proportionately. It will also compare the UK’s approach with the US, Hong Kong, Australia, and the European Union.
The APPG outlined its concern clearly. It said crypto and digital asset firms have consistently reported difficulty accessing UK banking services. The group added that banking access is essential for legitimate businesses, while unnecessary barriers risk slowing investment, innovation, and long-term growth.
The scale of the issue remains significant. Research from the UK Cryptoasset Business Council, published in January 2026, found roughly 40% of payments to crypto exchanges were blocked or delayed by UK banks. One platform reported almost £1 billion in rejected transactions during 2025. Meanwhile, 80% of exchanges saw customer friction increase, while 70% described banking conditions as more hostile than a year earlier.
UK LAWMAKERS LAUNCH INQUIRY INTO CRYPTO BANKING ACCESS!
UK parliamentarians have launched an inquiry into the challenges crypto firms face in obtaining traditional banking services.
The probe aims to address barriers that have hindered the sector’s growth and integration with… pic.twitter.com/aSqFNBRRPx
— Crypto Banter (@crypto_banter) July 21, 2026
Those findings contrast with the government’s stated position. HM Treasury Economic Secretary Lucy Rigby told Parliament in March 2026 that licensed crypto firms should not face restrictions simply because they operate in the sector. As a result, the inquiry will examine why FCA-registered businesses continue facing banking hurdles despite regulatory progress.
Discover: The Best Crypto to Diversify Your Portfolio
UK Crypto and FCA Framework Sharpen the Debanking Question
The inquiry also follows the UK’s finalized FCA crypto framework. The authorization window opens in September 2026, while full compliance becomes mandatory on October 25, 2027. If licensed firms still struggle to secure banking services, confidence in the new regulatory framework could suffer.
Meanwhile, comparisons with overseas markets continue to grow. In the United States, crypto companies have compared banking restrictions to Operation Chokepoint 2.0. Kraken recently secured a $22 million settlement from an auditor it claimed abandoned the exchange during that period. In Australia, Coinbase has also criticized banks over restrictions on crypto-related services. The APPG will assess how competing jurisdictions have handled similar challenges.
The inquiry arrives during a political transition. Andy Burnham became Prime Minister on Monday, while John Healey was appointed Chancellor of the Exchequer. Legal experts say global financial firms will closely watch whether the new government delivers a stable regulatory environment for digital assets and financial services.
Written submissions will be accepted from July 21 through August 31 across banking, payments, fintech, and crypto sectors. The APPG will then publish recommendations before the October 2027 deadline. Industry participants are expected to advocate for case-by-case risk assessments instead of blanket restrictions on FCA-registered crypto firms.
Trade on Bybit and Get a Chance to Win Our $1,000 USDT Airdrop
The post APPG Targets UK Bank Debanking of Crypto Firms Before 2027 FCA Deadline appeared first on Cryptonews.
