Some UK crypto firms have found their bank accounts closed without much explanation. This prompted the All-Party Parliamentary Group (APPG) to open a formal investigation into why banks are debanking crypto companies before the Financial Conduct Authority's (FCA) mandatory deadline in 2027.
The APPG's inquiry is gathering evidence until August 31 to understand the scale and reasons behind banks' reluctance to serve cryptocurrency-related businesses. The findings are expected before the FCA's deadline, which sets new licensing requirements for crypto firms operating in the UK.
British banks have increasingly refused accounts to crypto companies, citing perceived compliance risks. This practice, often called debanking, can cripple crypto businesses' ability to operate, making it hard to process payments or manage funds.
The FCA's 2027 deadline will require all crypto firms to have regulatory approval to continue operating legally, which some banks seem to be anticipating by cutting ties early. However, the APPG inquiry aims to make sure this debanking happens transparently and fairly, without harming the developing crypto ecosystem.
