UK Crypto Firms Face Deplatforming Risk as JPMorgan Chase Warns of Action


Coinbase CEO Brian Armstrong has expressed his displeasure with JPMorgan Chase’s recent decision to prohibit its UK subsidiary, Chase UK, from facilitating crypto-related transactions. On Tuesday, Chase UK issued a statement to customers notifying them that they would no longer be allowed to purchase cryptocurrencies using its debit cards or through bank transfers.

The bank cited an increase in fraud related to digital currencies as the reason for the decision. Data from Action Fraud, the U.K.’s fraud reporting agency, revealed that consumer losses to crypto fraud in the country had increased by more than 40% in the past year, surpassing £300 million.

Armstrong criticized the move, stating that it shouldn’t be up to private companies to “de-platform” the crypto industry. He suggested that the U.K. government should take heed of the move, as the country has been trying to pass legislation to regulate retail trading in crypto assets.

In an interview with CNBC’s Arjun Kharpal, the Economic Secretary to the Treasury, Andrew Griffith, said the U.K. could pass a crypto-specific law by April 2024. Jurisdictions around the world, from Dubai to Singapore, have been trying to become more crypto-friendly in order to attract businesses.

The U.S., however, has taken a hard stance on crypto firms, with regulators increasing their enforcement action against companies. Armstrong suggested that the U.K. government should take note of Chase UK’s ban, though he acknowledged the country’s ambition to become a “Web3 and crypto hub.”

Related articles

Recent articles