Key Takeaways
- • The UK Parliament has relaunched the All-Party Parliamentary Group (APPG) for Crypto and Digital Assets, a cross-party committee jointly chaired by Labour MP Gurinder Josan and Conservative Lord Vaizey of Didcot (former Minister for the Digital Economy), to scrutinise the Government's regulatory approach to crypto and digital asset sectors.
- • The relaunch directly addresses banking barriers facing crypto firms in the UK, where major banks including HSBC, Barclays, and NatWest have imposed transaction limits on customer transfers to crypto exchange accounts, with one exchange reporting nearly $1.4 billion in declined transactions in 2025 due to bank-side rejections.
- • The APPG is tasked with scrutinising UK Government plans to establish the country as a global leader in digital asset technologies while protecting consumers, with the Government committed to introducing cryptoasset legislation by year-end 2026.
- • Crypto industry representatives—including Coinbase, Kraken, and Copper—have urged the UK to develop a national stablecoin strategy to avoid becoming a "rule-taker rather than a rule-maker" in the digital asset era as other jurisdictions advance their regulatory frameworks.
- • The group, supported by CryptoUK (the leading industry trade body serving as secretariat), comprises parliamentarians with expertise in financial services, technology, and digital innovation across the political spectrum.
Summary
The UK Parliament has relaunched its All-Party Parliamentary Group (APPG) for Crypto and Digital Assets in response to mounting regulatory gaps and banking infrastructure barriers facing the cryptocurrency sector. The cross-party committee is jointly chaired by Labour MP Gurinder Josan CBE and Lord Vaizey of Didcot, a Conservative peer and the UK's former Government Minister for the Digital Economy. The group's relaunch reflects Parliament's recognition that the UK must establish a coherent regulatory framework to compete globally while addressing sector-specific challenges, particularly the banking access issues that have become a critical constraint on industry growth.
A central issue driving the APPG's focus is the de facto banking exclusion facing crypto firms and their customers. Major UK financial institutions—including HSBC, Barclays, and NatWest—have implemented transaction limits restricting customer transfers to crypto exchange accounts. One cryptocurrency exchange documented nearly $1.4 billion in declined transactions during 2025 attributable to bank-side rejections, illustrating the scale of the banking barrier. This systemic friction has created operational and competitive disadvantages for UK-based crypto firms relative to jurisdictions with more accommodative banking infrastructure.
The APPG's mandate encompasses scrutinising the UK Government's legislative roadmap and making recommendations on the future regulatory framework. Chancellor Rachel Reeves published draft cryptoasset legislation in April 2026, with the Government committing to introduce full legislation by year-end. The group comprises parliamentarians with expertise spanning financial services, technology, and digital innovation, positioned to evaluate regulatory proposals against both consumer protection and economic competitiveness objectives. CryptoUK, the sector's leading trade body, serves as the group's secretariat, facilitating industry engagement and stakeholder input.
Industry participants have signalled urgency around stablecoin regulation specifically. In an open letter, representatives from major platforms including Coinbase and Kraken, along with infrastructure provider Copper, called for the UK to establish a national stablecoin strategy. These firms contended that without strategic clarity, the UK risks becoming a "rule-taker rather than a rule-maker" as competing jurisdictions—notably the United States—advance their own digital asset frameworks. Under current FCA requirements, crypto trading platforms, intermediaries, custodians, stablecoin issuers, and staking arrangement providers must obtain formal FCA authorisation to operate in the UK, a regulatory baseline the APPG will evaluate in context of international competitive positioning.
A central issue driving the APPG's focus is the de facto banking exclusion facing crypto firms and their customers. Major UK financial institutions—including HSBC, Barclays, and NatWest—have implemented transaction limits restricting customer transfers to crypto exchange accounts. One cryptocurrency exchange documented nearly $1.4 billion in declined transactions during 2025 attributable to bank-side rejections, illustrating the scale of the banking barrier. This systemic friction has created operational and competitive disadvantages for UK-based crypto firms relative to jurisdictions with more accommodative banking infrastructure.
The APPG's mandate encompasses scrutinising the UK Government's legislative roadmap and making recommendations on the future regulatory framework. Chancellor Rachel Reeves published draft cryptoasset legislation in April 2026, with the Government committing to introduce full legislation by year-end. The group comprises parliamentarians with expertise spanning financial services, technology, and digital innovation, positioned to evaluate regulatory proposals against both consumer protection and economic competitiveness objectives. CryptoUK, the sector's leading trade body, serves as the group's secretariat, facilitating industry engagement and stakeholder input.
Industry participants have signalled urgency around stablecoin regulation specifically. In an open letter, representatives from major platforms including Coinbase and Kraken, along with infrastructure provider Copper, called for the UK to establish a national stablecoin strategy. These firms contended that without strategic clarity, the UK risks becoming a "rule-taker rather than a rule-maker" as competing jurisdictions—notably the United States—advance their own digital asset frameworks. Under current FCA requirements, crypto trading platforms, intermediaries, custodians, stablecoin issuers, and staking arrangement providers must obtain formal FCA authorisation to operate in the UK, a regulatory baseline the APPG will evaluate in context of international competitive positioning.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.