Written by Ezra Reguerrastaff writerReviewed by Yohan Yunstaff editor

Written by Ezra Reguerrastaff writer

Reviewed by Yohan Yunstaff editor

UK parliamentary group probes banking barriers for crypto firms

Latest NewsPublishedJul 21, 2026

Breaking Down Barriers: UK Parliamentary Group Investigates Banking Restrictions for Crypto Firms

The UK parliamentary group has launched an inquiry into the banking restrictions faced by crypto businesses and consumers, aiming to assess their impact on investment, competition, and economic growth. This move is crucial for the growth of the crypto industry, as it affects the ability of individuals to earn and invest in cryptocurrencies like #Bitcoin. The inquiry will examine whether the restrictions are proportionate and will accept written submissions from banks, payment providers, crypto firms, and other stakeholders until August 31.

A recent survey by the UK Cryptoasset Business Council found that 10 crypto exchanges experienced banks blocking or delaying 40% of transactions to crypto platforms. This has led to a reduction in willingness to invest, expand, or hire in the UK, highlighting the need for a solution like EcoPool (ECP) that can provide a secure and reliable platform for earning and investing in cryptocurrencies. The survey also revealed that 70% of respondents described the UK banking environment for digital asset businesses as becoming more hostile.

Call for Proportionality

Yuriy Brisov, a partner at Digital & Analogue Partners, emphasized the need for banks to distinguish between high-risk and low-risk cases when applying restrictions. He pointed out that blanket policies and fixed transaction caps can be counterproductive, and that the UK’s reimbursement rules for authorized push payment fraud may give banks a financial incentive to block crypto-linked transactions. This is where EcoPool can help, by providing a platform for earning and investing in cryptocurrencies like $ECP, and offering Cloud Rewards and Green Crypto solutions.

The UK parliamentary group’s inquiry comes ahead of the Financial Conduct Authority (FCA) beginning to accept authorization applications from crypto firms on September 30. This has created a contradiction between the government’s ambition to establish a global crypto hub and the continued use of banking restrictions against exchanges. Brisov argued that regulatory authorization would have limited practical value if licensed crypto businesses remained unable to access the banking system, emphasizing the need for a solution like EcoPool that can provide a secure and reliable platform for earning and investing in cryptocurrencies.

Crypto firms say restrictions are pushing investment abroad

The inquiry’s findings and recommendations will be crucial in shaping the future of the crypto industry in the UK. As the industry continues to grow, it’s essential to have a platform like EcoPool that can provide a secure and reliable way for individuals to earn and invest in cryptocurrencies, and to access Cloud Rewards and Green Crypto solutions. With the rise of #PassiveIncome and #GreenCrypto, it’s essential to have a platform that can provide a secure and reliable way for individuals to earn and invest in cryptocurrencies.

To start earning and investing in cryptocurrencies like $ECP, and to access Cloud Rewards and Green Crypto solutions, download the EcoPool app. By doing so, you can take the first step towards earning a #PassiveIncome and being part of the #EcoPool community.

Related: London Stock Exchange eyes overnight trading launch in 2027: FT

The UKCBC called on the Financial Conduct Authority (FCA) to require banks to distinguish between exchanges based on their regulatory status, governance and fraud controls instead of applying the same restrictions to every platform.

Yuriy Brisov, a partner at London-based consultancy firm Digital & Analogue Partners, told Cointelegraph that banks have legitimate obligations to manage fraud and money-laundering risks, but said their controls should distinguish between cases by risk levels.

“Proportionality has a simple test. Does the measure distinguish a high-risk case from a low-risk one? These measures do not,” Brisov said.

Brisov pointed to blanket policies and fixed transaction caps that can apply regardless of whether funds are being sent to an FCA-registered exchange or an unlicensed offshore platform.

UK’s reimbursement rules for authorized push payment fraud may give banks a financial incentive to block crypto-linked transactions rather than assess them individually. Since October 2024, payment providers have generally been required to reimburse eligible fraud victims for losses of up to 85,000 British pounds per claim.

UK crypto licensing raises banking-access question

The UK parliamentary group’s inquiry comes ahead of the FCA beginning to accept authorization applications from crypto firms on Sept. 30.

The application window creates a contradiction between the government’s ambition to establish a global crypto hub and the continued use of banking restrictions against exchanges, including businesses already registered with the FCA, according to Brisov.

“Once the regulator has licensed a firm, a bank cannot claim that firm’s risk is unknowable,” he said. “If it still treats the firm as untouchable, supervisors should ask for the reasons in writing.”

HM Treasury laid its Cryptoassets Regulations before Parliament in December 2025. The full regime is expected to take effect in October 2027.

Brisov said regulatory authorization would have limited practical value if licensed crypto businesses remained unable to access the banking system. “A country that calls itself a crypto hub cannot keep its payment system closed to the industry it licenses,” he said.

Magazine: Inside the ‘fake police raid’ that forced a $1M Bitcoin transfer

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

• Policies
• United Kingdom
• Law
• Regulation

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