UK Parliament begins inquiry into banking chokepoint for crypto businesses

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.