Coinbase CEO Brian Armstrong has criticized J.P. Morgan Chase’s decision to block cryptocurrency-related transactions in its subsidiary, Chase UK. He argues that private companies should not have the power to “de-platform” the crypto industry and suggests that the U.K. government should intervene and regulate the industry instead.
Armstrong expressed disappointment with Chase UK’s decision and pointed out that the U.K. government has been actively trying to attract crypto businesses to the country. He believes that the government should play a pivotal role in shaping the regulatory landscape for cryptocurrencies.
Chase UK announced in an email to customers that it will block cryptocurrency transactions starting from October 16th, citing concerns over the increasing number of frauds and scams associated with crypto. However, Armstrong called for clarification on the bank’s stance and hoped that it was a misunderstanding.
J.P. Morgan Chase is not the only financial institution in the U.K. to implement restrictions on crypto transactions. NatWest and HSBC have also taken similar steps due to concerns over fraud and the misuse of cryptocurrencies. According to data from Action Fraud, U.K. consumer losses to crypto fraud have increased by over 40% in the past year, surpassing £300 million for the first time.
The U.K. government has been working on developing legislation to regulate retail trading in crypto assets. The Financial Services and Markets Bill is one example of legislation that aims to bring crypto assets under regulatory oversight. However, it is not a comprehensive law tailored specifically to cryptocurrencies. Economic Secretary to the Treasury Andrew Griffith has suggested that the U.K. could pass a crypto-specific law by April 2024.
The U.K. government’s ambition is to position the country as a “Web3 and crypto hub.” This vision aligns with the efforts of other jurisdictions worldwide, such as Dubai and Singapore, to attract crypto-related businesses.
In conclusion, the decision by J.P. Morgan Chase to block crypto-related transactions in Chase UK has been met with criticism from Coinbase CEO Brian Armstrong. He believes that the government should step in and regulate the industry instead of private companies having the power to “de-platform” it. The U.K. government’s desire to attract crypto businesses aligns with its efforts to position the country as a crypto hub. However, concerns over fraud and the misuse of cryptocurrencies have led to restrictions on crypto transactions by several financial institutions in the U.K. The government is working on legislation to regulate crypto assets, but a specific law tailored to cryptocurrencies may take some time to be implemented.
