Home UK Finance Ministry to discuss crypto banking woes with lawmakers

UK Finance Ministry to discuss crypto banking woes with lawmakers

The British government has pledged to probe banking troubles faced by crypto companies with “lawmakers focused on the issue,” according to Coindesk.

The Chancellor of the Exchequer (finance minister) Jeremy Hunt has agreed for his department officials to investigate the matter after Lisa Cameron MP, the chair of the Crypto and Digital Assets All-Party Parliamentary Group (APPG) questioned him on how difficult it is for licensed companies to open bank accounts.

Hunt responded positively, adding that the Economic Secretary of the Treasury, Bim Afolami, should meet with the APPG to discuss progress.

“The U.K., London in particular, has become the global crypto hub, but to make sure the market really can take off in the way that was intended responsibly, we need to regulate it, which is why we’ve introduced regulations for stablecoins, for promotion of crypto services,” stated Hunt.

Banks cold on crypto payments

British Prime Minister Rishi Sunak previously set out a strategy to turn the UK into a crypto hub during his reign as finance minister.

Then, earlier this year, the UK’s new cryptocurrency guidelines were revealed, which introduced legislation to be enacted in early 2024 to have crypto and stablecoins recognized as regulated financial activities.

Despite the new regulated status for crypto in the UK, the banks have remained cold on digital currency, leading to the issues the sector is currently experiencing.

Back in February this year, Alison Rose, chief executive officer of NatWest, told a House of Commons Treasury committee hearing her banking group bank was “blocking retail and wealth customers from transferring into crypto assets because of the volatility and the stability of the platform,” while also citing concerns of fraud.

Further developments are likely, at the behest of the UK government, in an emerging, evolving market.

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Graeme Hanna
Tech Journalist

Graeme Hanna is a full-time, freelance writer with significant experience in online news as well as content writing. Since January 2021, he has contributed as a football and news writer for several mainstream UK titles including The Glasgow Times, Rangers Review, Manchester Evening News, MyLondon, Give Me Sport, and the Belfast News Letter. Graeme has worked across several briefs including news and feature writing in addition to other significant work experience in professional services. Now a contributing news writer at ReadWrite.com, he is involved with pitching relevant content for publication as well as writing engaging tech news stories.

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