UK Parliament Launches Probe Into Bank Hostility Toward Crypto Firms

The All-Party Parliamentary Group (APPG) is opening a six-week window for written submissions from banks, fintech firms, and digital asset companies. Lawmakers intend to scrutinize whether institutional risk-management policies have become disproportionate, effectively pushing regulated firms out of the financial system. Beyond direct account denials, the review will examine how major banks are imposing arbitrary limits on transfers to crypto platforms and the subsequent impact on retail customers.

While the inquiry lacks direct legislative power, its findings will influence the ongoing development of the UK's digital asset framework. This scrutiny arrives as the government pushes forward with tokenized finance initiatives, including a sovereign bond pilot on distributed ledger infrastructure. The APPG aims to reconcile the tension between the government’s ambition to lead in digital finance and the practical reality of businesses struggling to maintain basic banking relationships.