UK Parliament Queries Banks on Crypto Account Restrictions Amid FCA Regulatory Shift

UK APPG demands bank CEOs explain crypto service limits, citing 40% transaction block rates and upcoming FCA rules effective October 2027.

Woofun AI reports that the UK Parliament's Crypto and Digital Assets APPG has formally requested major British banks to justify their current restrictions on cryptocurrency firms. Co-chairs Gurinder Singh Josan and Lord Vaizey of Didcot sent letters to bank CEOs outlining six key questions regarding service availability, transaction limitations, and future policy adjustments following the Financial Conduct Authority's regulatory framework implementation.

The inquiry follows a parliamentary review launched on July 21, with responses due by August 31. Data from the UK Crypto Asset Business Council indicates that approximately 40% of transactions destined for crypto exchanges are blocked or delayed. Specific institutions such as HSBC, NatWest, Monzo, and Nationwide impose monthly transfer caps ranging from £5,000 to £10,000, while Starling and Chase UK prohibit these transfers entirely. Lucy Rigby, Secretary of State for Finance stated that the government opposes industry-based banking restrictions for FCA-licensed entities, noting that full regulatory implementation is scheduled for October 2027.