British commercial banks are coming under fire for failing to provide banking services and financing to cryptocurrency firms.
A United Kingdom (U.K.) parliamentary group wrote to the largest lenders, criticizing them for the lack of banking services provided to crypto firms.
The “Dear CEO” letter was sent to leading banks such as Barclays (BCS), Lloyds (LYG), and Standard Chartered (LON: STAN), and asked them to explain their approach to providing services to U.K. crypto businesses.
“We have heard of repeated instances where crypto and digital asset firms have struggled to open accounts with U.K. banks,” reads the letter.
Several British banks have introduced specific restrictions on crypto-related payments, including HSBC (HSBC), NatWest (NWG), and Santander (SAN).
The crypto industry has accused U.K. lenders of “debanking” them and making it difficult for digital assets to proliferate and thrive in the country.
The British government has identified a lack of banking services as one of the biggest barriers to the growth of U.K. crypto and digital asset businesses.
“We are concerned that limited banking access could ultimately make it harder for licensed firms to grow and could impact the decisions of firms considering investing in the U.K.,” concludes the letter sent to the banks by parliamentarians.
The stock of HSBC, the largest U.K. bank, has gained 60% over the last 12 months to trade at $103.32 U.S. per share in New York.
