TL;DR
- UK lawmakers asked major banks to explain whether FCA-authorized crypto companies will receive fairer access to accounts, services and transaction facilities under the new regime.
- The FCA framework opens applications September 30, runs through February 28, 2027, and is expected to take effect October 25, 2027.
- The APPG is collecting evidence through August 31 on banking restrictions, sector-wide de-risking and whether current practices could undermine Britain’s regulated digital asset ambitions.
UK lawmakers are pressing major banks to explain whether authorized crypto companies will receive fairer treatment once the Financial Conduct Authority’s new digital asset regime takes effect. Gurinder Singh Josan and Lord Vaizey, co-chairs of the Crypto and Digital Assets All-Party Parliamentary Group, wrote to bank executives seeking details on current policies, account access and transaction restrictions. The concern is striking: regulation may become clearer while banking access remains uncertain. The lawmakers warned that difficulty securing ordinary financial services could become one of the biggest barriers to growth for Britain’s crypto industry across the sector.
New FCA regime puts banking access under scrutiny
The letter asks lenders whether FCA authorization will materially change how they assess crypto businesses, rather than leaving firms subject to blanket sector-based restrictions. Banks were also asked what legal, compliance, commercial and risk considerations shape their decisions, and whether they restrict crypto-related transactions for business or retail customers. The central question is whether regulatory approval will actually translate into practical banking access. Josan and Vaizey acknowledged financial-crime and consumer-protection obligations, but highlighted industry arguments that decisions should reflect each company’s individual risk profile instead of treating every digital asset business identically in everyday practice.
The timing matters because the FCA finalized its broader crypto framework in June, expanding oversight beyond existing anti-money laundering and financial promotion requirements. Firms conducting regulated crypto activities will need authorization under the Financial Services and Markets Act. Applications are scheduled to open September 30 and run through February 28, 2027, with the regime expected to take effect October 25, 2027. That creates a regulatory milestone banks can no longer easily ignore when assessing authorized crypto companies. The government has also said licensed firms should not eventually face restrictions simply because they operate in crypto.
The parliamentary letter forms part of a wider inquiry launched July 21 into banking access for the crypto sector. The APPG is gathering evidence from banks, crypto companies and other stakeholders through August 31 before presenting findings and recommendations to the UK government. The inquiry could expose whether de-risking practices are undermining the country’s broader effort to build a regulated digital asset market. Exchanges, custodians, payment firms, wallet providers, tokenization businesses and stablecoin issuers are all potentially affected, making banking policy a foundational issue rather than a narrow dispute over individual account decisions nationwide today.
