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Story: UK Banks Face Parliamentary Grilling Over Crypto Account Denials and Payment Limits

By Julie Binoche

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What the Lawmakers Actually Want From Banks. The APPG isn't just asking banks to explain themselves.

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Stakes for the UK's Crypto Ambitions. The UK has been pretty vocal about wanting to be a global hub for digital assets.

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Two senior UK lawmakers wrote directly to the chief executives of major banks and financial service providers on August 11, demanding answers about why crypto firms keep getting…

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The APPG has been hearing the same complaints repeatedly. Crypto businesses across the UK — exchanges, custodians, payment firms, wallet providers, tokenization outfits,…

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The APPG isn't just asking banks to explain themselves. It's also asking them to identify the specific regulatory, legal, compliance, and risk factors that shape how they treat…

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The group's core argument is pretty straightforward: if the UK is building a new regulatory regime meant to legitimize and grow the digital asset sector, then authorized firms…

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The lawmakers do acknowledge that banks have real obligations. Anti-money laundering rules, consumer protection requirements — those aren't going away, and the APPG isn't asking…

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Related: SECs Regulation Crypto Vote Threatens to Upend How Startups Raise Capital

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Stablecoin issuers and tokenization businesses are probably the most acutely affected here. Those models depend on fast, reliable banking relationships — not accounts that get…

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The inquiry's scope is wide enough to capture all of that. Findings go to the government as recommendations, which means the APPG's conclusions could shape how the UK's digital…

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Evidence collection wraps at the end of August. After that, the group reviews submissions and builds out its recommendations.

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See also: Crypto.com Launches Tokenized Derivatives Covering 1,500 U.S. Stocks and ETFs

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But the banks have been formally put on notice. Josan and Vaizey want answers, and the deadline is August 31.

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