A cross-party group of UK politicians has initiated an inquiry to examine the extent to which domestic banks are hindering the growth of cryptocurrency companies by denying them banking accounts and imposing restrictions on crypto-related payments. The investigation commenced on Tuesday.
According to a press release, the UK's All-Party Parliamentary Group (APPG) on Crypto and Digital Assets is co-chaired by Lord Vaizey of Didcot, a former UK Digital Economy Minister, and Labour MP Gurinder Singh Josan CBE.
Since the inception of cryptocurrency, difficulties in establishing banking relationships have persistently challenged industry participants. This issue is particularly pronounced in the United States, where a systematic denial of banking services to businesses and individuals has been termed "Operation Choke Point 2.0."
Several major UK banks have also implemented restrictions on cryptocurrency-related payments, the APPG stated in an announcement. Consequently, the inquiry will focus on the shortage of banking accounts for crypto businesses, including access to related professional services such as insurance.
The APPG will also examine the restrictions banks place on crypto-related transactions, given concerns that some UK financial institutions have taken measures like blocking payments to certain crypto firms or imposing transfer limits. The investigation aims to understand how these restrictions are enforced, whether they are proportionate, and their impact on consumers, businesses, innovation, and competition, the group said.
"For years, the APPG has received consistent reports from crypto and digital asset businesses about the difficulties they face in opening bank accounts and accessing banking services, alongside concerns about bank-imposed restrictions on crypto-related transactions," stated Lord Vaizey of Didcot, the APPG's co-chair.
The cross-party parliamentary group is calling for written evidence from the banking, payments, fintech, and crypto sectors over a six-week period. Following this, it will publish a report detailing its findings and recommendations for the government.
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