The UK Parliament's cross-party group for digital assets has launched an inquiry into banking access for the country's crypto sector.

The Crypto and Digital Assets All-Party Parliamentary Group (APPG) — chaired by Lord Vaizey of Didcot and Labour MP Gurinder Singh Josan CBE — announced the probe on Tuesday. 

The group aims to examine difficulties crypto businesses face in opening and maintaining bank accounts in the UK, as well as restrictions some UK banks have placed on crypto-related transactions.

"The APPG has heard consistent reports from crypto and digital asset businesses that they face difficulties accessing bank accounts and banking services," the group said in the statement. "Access to banking services is fundamental for any legitimate business, and where unnecessary barriers exist they have the potential to hinder growth, investment and innovation.”

Ongoing crypto reform

The inquiry will also examine international approaches adopted in jurisdictions including the U.S., Hong Kong, Australia, and the EU.

The APPG is inviting written evidence from the banking, payments, fintech and crypto sectors for six weeks — from July 21 to Aug. 31. The group plans to publish a report on findings and recommendations to the government thereafter.

This comes weeks after the publication of the UK's new crypto regulatory framework and aims to assess whether these barriers risk undermining the government's ambition for the UK to become a global leader in digital assets.

"With the publication of the UK's new crypto regulatory framework, now is the right time to examine whether any remaining barriers could undermine that ambition as the regime comes into force next year," the group said. The framework is scheduled to take effect on Oct. 25, 2027.

New Prime Minister

The inquiry coincides with a major political shift in the UK on Monday, as Labour Party's Andy Burnham takes office as prime minister. 

Burnham announced his intention to scrap the previous government's digital ID scheme, redirecting resources toward cost-of-living measures. Local experts said abandoning digital IDs will leave the UK lagging globally.

Stefan Deiss, co-founder and CEO of The Hashgraph Group, said in a statement that stepping back from the idea of a single, centralized government managing every citizen's digital ID was the right decision, but the country should not discard the idea entirely.

"The technology has moved on, and there's now a better way: credentials held in a secure wallet on the citizen's own phone, not on a state server," Deiss said. "Burnham has promised a government that works for ordinary people. Identity that citizens genuinely own is precisely that. Pause the old model, but don't lose the ambition."

Burnham also named John Healey as chancellor of the Exchequer — the top finance official of the country. 

Jonathan Herbst, Global Head of Financial Services at law firm Norton Rose Fulbright, said that the new chancellor will likely ensure that ongoing financial reforms are delivered in a predictable and coordinated manner.

"For internationally active firms, the UK's attractiveness depends not just on the substance of the rules but on the stability of the regulatory environment," Herbst said. "Areas such as capital markets, fintech, digital assets and sustainable finance will continue to be important tests of that commitment."