Date: Friday 27th October, 2023

Re: Access to Bank Accounts for UK Crypto Businesses

Dear Minister,

I am writing as Chair of the Crypto and Digital Assets All Party Parliamentary Group (APPG) in relation to growing concerns that have been raised with me that a number of cryptocurrency and digital asset businesses are struggling to secure access to basic banking services and even bank accounts in the UK.

I have heard from a number of operators who have raised this issue with me directly and have expressed concern that this not only presents operational challenges for a lot of SMEs and UK start-ups but furthermore that this could fundamentally undermine the Government’s ambition for the UK to become a cryptocurrency hub and could be a significant barrier to growth and innovation.

Clearly we do not want to see bad actors in this space, but need to ensure that legitimate companies that are regulated in the UK have clear pathways to operate and grow.

Our recent APPG Inquiry also confirmed that UK cryptocurrency firms often struggle to secure access to UK banking services and a high proportion of banks have refused to provide bank accounts to cryptocurrency and digital asset firms, even where those firms are regulated and licensed to operate in the UK. The Inquiry heard that this could be one of the single biggest barriers to growth and innovation of the industry in the UK.

I would welcome your guidance on finding a way forward to ensure that there are clear pathways for regulated companies to access fundamental banking facilities.

Yours sincerely,