Lucy Rigby concedes crypto firms are shut out of UK banks despite regulatory push

The UK Treasury has acknowledged that cryptoasset firms are struggling to access banking services, with Economic Secretary Lucy Rigby telling Parliament the government is “engaged with the sector” to address the problem, even as ministers push to position Britain as a global digital finance hub.

The inquiry signals that policymakers are increasingly aware that access to banking not regulation alone remains one of the industry’s biggest obstacles.

Parliament examines banking access for crypto companies

Members of Parliament have raised concerns that some banks continue to apply blanket restrictions to cryptoasset businesses despite the government’s ongoing efforts to regulate the sector.

In a written response to Parliament, the UK Treasury acknowledged that crypto firms continue to face difficulties obtaining banking services but emphasized that licensed businesses should not face discrimination solely because they operate within the crypto industry.

“The Government is aware that cryptoasset firms are facing challenges associated with access to banking services, and we are engaged with the sector on these matters.” Lucy Rigby, Economic Secretary to the Treasury.

The Treasury added that while banks ultimately make commercial decisions regarding their customers, firms should be treated fairly under the evolving regulatory framework.

The comments have amplified calls from industry stakeholders who argue that banking access has become a critical bottleneck for innovation in Britain’s crypto economy.

Banking remains a major hurdle despite regulatory progress

Although the UK has made significant progress toward implementing a formal crypto regulatory regime, many exchanges, custodians and blockchain startups continue to report difficulties opening or maintaining bank accounts.

Banks have frequently cited concerns surrounding fraud prevention, anti-money laundering compliance and financial crime risks when limiting services to crypto-related businesses.

While those concerns remain legitimate from a risk-management perspective, industry groups argue that blanket restrictions undermine firms that comply with Financial Conduct Authority (FCA) requirements.

The government’s proposed licensing regime is intended to create greater clarity for both financial institutions and crypto companies.

Officials believe a regulated environment should reduce uncertainty and encourage banks to distinguish between compliant firms and higher-risk operators rather than applying sector-wide restrictions.

For investors, broader banking access could improve liquidity, simplify fiat on- and off-ramps, and encourage more institutional participation within the UK crypto market.

Industry says banking access is essential for competitiveness

The parliamentary discussion arrives as the UK competes with jurisdictions such as the European Union, Singapore and the United States to attract blockchain investment.

Industry executives have consistently argued that regulatory clarity alone cannot make Britain competitive if licensed firms remain unable to secure reliable banking relationships.

The House of Lords Financial Services Regulation Committee has also highlighted the importance of removing unnecessary barriers facing digital asset businesses during its broader examination of stablecoin regulation.

“The Bank, FCA and HM Treasury must recognise that the stablecoin market is nascent and growing, and adapt the regulatory regime as the market develops.” House of Lords Financial Services Regulation Committee.

That recommendation reflects growing concern that excessive restrictions could slow innovation while other financial centres accelerate digital asset adoption.

What this means for crypto investors

For crypto investors, Parliament’s attention to banking restrictions could prove as significant as new crypto legislation itself.

A more predictable banking environment would likely encourage greater institutional participation, improve operational stability for UK-based exchanges and blockchain firms, and strengthen confidence among international investors considering expansion into the British market.

The inquiry also illustrates a broader shift in regulatory thinking. Rather than questioning whether crypto businesses should exist within the financial system, policymakers are increasingly focused on ensuring that compliant firms receive fair access to essential banking infrastructure.

Whether Parliament ultimately recommends stronger protections or additional guidance for banks remains to be seen.

However, the discussion underscores a growing consensus that regulation and banking access must evolve together if the UK hopes to establish itself as a leading global digital asset hub.

As regulators finalize the country’s crypto framework, the outcome of this debate could become one of the most closely watched developments for investors, fintech companies and traditional financial institutions alike.