Submission to the APPG inquiry into access to banking services

Bitcoin Policy UK submitted evidence to the Crypto and Digital Assets APPG's parliamentary inquiry into access to banking services, almost three years after it first raised blanket banking restrictions with the City Minister in September 2023. The submission draws on industry surveys showing that debanking and blanket payment restrictions remain common. A January 2025 survey by Startup Coalition, the UK Cryptoasset Business Council (UKCBC) and Global Digital Finance found that half of the fintech and crypto firms surveyed had been refused a bank account or had one closed, even though 81% were legally based in the UK. UKCBC's January 2026 survey of ten exchanges found that roughly 40% of bank-to-exchange transfers were blocked or delayed, and 80% of the exchanges said restrictions had increased over the previous year.

The submission argues that banks apply sector-wide policies instead of individual, risk-based assessment, and that Bitcoin, which has no issuer and a fixed supply, is caught by restrictions designed for very different products. It accepts that protecting customers from fraud is a legitimate aim, but says blanket rules restrict lawful activity and can push customers towards offshore platforms with weaker protections. Drawing on France and Hong Kong, it makes four recommendations: a clear statement that Bitcoin-specific, FCA-registered activity should not face blanket restriction; a specific reason and an appeal route when a payment is declined or an account closed; confirmation that banks can rely on FCA registration when assessing risk; and regular published data on the scale of restrictions.