UK banks are facing renewed scrutiny over their treatment of crypto businesses as the country prepares to open applications under its new digital asset regulatory regime.
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The Crypto and Digital Assets All-Party Parliamentary Group wrote to leaders of British banks on Aug. 11 after hearing repeated complaints from crypto companies struggling to open or maintain accounts. The group is also examining restrictions placed on customers sending money to digital asset platforms.
Several large banks continue to limit retail crypto payments. NatWest caps identified transfers and debit card payments to crypto exchanges at 1,000 British pounds per day and 5,000 pounds over 30 days. Nationwide limits Faster Payments used to purchase crypto to 5,000 pounds per day. Starling said it no longer supports crypto purchases or sales through debit cards or bank transfers.
Banks have linked these policies to fraud, scams, and the risk of losses from volatile assets. The parliamentary inquiry is asking lenders to explain how they assess crypto businesses, what restrictions they apply, and whether compliant companies can obtain ordinary banking and payment services.
Even licensed crypto companies still depend on conventional bank accounts and payment rails for everyday operations, leaving banking access as a real constraint on growth.
The FCA will open its authorization window on Sept. 30, 2026, and close it on Feb. 28, 2027. The new mandatory regime is expected to take effect on Oct. 25, 2027, bringing a wider set of crypto activities under the Financial Services and Markets Act.
The regulator published final rules and guidance on June 30 for companies seeking permission under the framework. Applicants will face FCA supervision and enforcement once authorized.
Banking access was already under parliamentary scrutiny before the latest letter. During a House of Lords debate on July 8, lawmakers raised concerns that regulated digital asset businesses could struggle to obtain banking, payment, and settlement services. The debate described the problem as a barrier to growth and market entry.
The issue now creates a practical test for the UK’s crypto policy. Companies seeking regulatory certainty depend on commercial banks for accounts, payments, treasury operations, and other basic financial infrastructure as they expand in Britain.
The APPG is collecting evidence through the end of August and plans to publish recommendations after the inquiry. Its questions cover business accounts, payment restrictions, and the criteria banks use when assessing crypto-related customers.
The outcome could show whether Britain’s new rulebook is matched by workable access to the banking system. Persistent restrictions may raise costs for regulated companies and influence where international crypto businesses choose to base operations.
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