coindesk.com
UK politicians want to know the extent to which the country’s banks have choked-off cryptocurrency firms by refusing them bank accounts and introducing restrictions on crypto-related payments, in a cross-party inquiry kicked off on Tuesday.
The UK’s Crypto and Digital Assets All-Party Parliamentary Group (APPG) is chaired by Lord Vaizey of Didcot, the former UK Government Minister for the Digital Economy, and Labour MP Gurinder Singh Josan CBE, according to a press release.
Ever since crypto came into being, difficulties around attaining banking relationships have made life hard for players in the space, with a systematic debanking of firms and individuals, particularly in the U.S. being referred to as “Operation Chokepoint 2.0.”
Several major UK banks have also introduced restrictions on crypto-related payments, the APPG said in a statement. As such the inquiry will focus on a dearth of bank accounts for crypto businesses, including associated professional services such as insurance.
The APPG will also look at restrictions placed by banks on crypto-related transactions, amid concerns that some UK banks have introduced measures such as blocking payments to certain crypto firms, or imposing transfer limits. The inquiry wants to understand how these restrictions are being applied, whether they are proportionate and what impact they have on consumers, businesses, innovation and competition, APPG said.
"Over a number of years, the APPG has heard consistent reports from crypto and digital asset businesses that they face difficulties accessing bank accounts and banking services, alongside concerns about restrictions on crypto-related transactions by banks,” APPG co-chair Lord Vaizey of Didcot said.
The APPG is inviting written evidence from across the banking, payments, fintech and crypto sectors over a six-week call for evidence before publishing a report setting out its findings and recommendations to the Government.