Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has had discussions with representatives from the UK banking sector on ensuring that reputable and regulated digital asset companies can secure business bank accounts in the UK.

The government set out at Fintech Week our firm ambition to make Britain a global hub for cryptoasset technology and investment. The government wants to ensure firms can invest, innovate and scale up in this country. And the government have announced a number of reforms which will see the regulation and aspects of tax treatment of cryptoassets evolve – our clear message to cryptoasset firms is that the UK is open for business.

These include committing to consult on a future regulatory regime later this year; legislating to bring stablecoins into payments regulation; setting up a ministerial-chaired Cryptoasset Engagement Group, bringing together key figures in industry; working with the Royal Mint to create a Non-Fungible Token; and exploring ways of enhancing the competitiveness of the UK tax system to encourage further development of the cryptoasset market in the UK.

HM Treasury holds regular discussions with the Financial Conduct Authority (FCA) on a range of issues regarding the regulation of financial markets, including cryptoassets.

The government established a Cryptoassets Taskforce in 2018, consisting of HM Treasury, the Bank of England, the Payment Systems Regulator (PSR) and the FCA. The Taskforce’s objectives include exploring the impact of cryptoassets, the potential benefits and challenges of Distributed Ledger Technology (DLT) in financial services; as well as assessing what, if any, regulation is required in response.

The decisions about what products are offered, including commercial accounts, and to whom remain commercial decisions for banks and building societies.