The All-Party Parliamentary Group (APPG) for Crypto and Digital Assets in the UK has officially launched a cross-party inquiry to examine the banking barriers faced by crypto companies. This step was taken in response to widespread reports of bank account denials and restrictions on payment transactions involving digital assets in the country.
The inquiry is co-led by the former UK Minister for the Digital Economy, Lord Vaizey of Didcot, and Labour Member of Parliament, Gurinder Singh Josan. This systematic phenomenon of financial service denial, or debanking, is seen as similar to the tightening of the crypto industry in the United States, known as "Operation Chokepoint 2.0".
The primary focus of the APPG inquiry includes the crisis of access to operational bank accounts and supporting professional services, such as insurance for crypto businesses. In addition, legislators will evaluate the policies of several major UK banks that impose limits on transfer amounts or complete transaction blocks, to assess whether these measures are proportionate and their impact on the innovation climate and market competition.
As an initial step, the APPG has opened a six-week window for written evidence submissions from the banking, fintech, and crypto industry sectors. All findings will be compiled into a comprehensive report containing strategic policy recommendations to be submitted to the UK Government.
