UK Finance has told Parliament’s Crypto and Digital Assets All-Party Parliamentary Group (APPG) that banks are not shutting out crypto firms as a sector, and that their limits on crypto payments are driven by fraud risk, including scam losses they can be ordered to refund.

In a letter dated October 5, UK Finance Chief Executive David Postings replied on behalf of the banking sector to the “Dear CEO” letter that APPG co-chairs Gurinder Singh Josan MP and Lord Vaizey of Didcot sent to the heads of all major UK banks on August 11. Postings said the letter should be read alongside, not in place of, individual responses that members are providing directly.

Six Questions to Bank CEOs, a Sector Reply

The August letter asked each bank to set…