Brian Armstrong, the CEO of Coinbase, has expressed his disapproval of Chase UK, the British arm of financial services behemoth JPMorgan Chase, and its recent decision to ban crypto transactions. In a post on X (formerly Twitter), Armstrong called the move “totally inappropriate behavior” and questioned whether the bank was in alignment with the policy goals of UK officials like Rishi Sunak. He urged UK crypto holders to consider closing their Chase accounts in response to the bank’s new policy.
Totally inappropriate behavior from @Chase UK (this is their UK bank only is my understanding)@RishiSunak @griffitha It appears @Chase UK does not respect your policy goals – thoughts?
— Brian Armstrong 🛡️ (@brian_armstrong) September 26, 2023
UK crypto holders should close their @Chase accounts if this is how they're going to be… https://t.co/n8OBxhtpcg
Chase UK recently announced a sweeping ban on cryptocurrency-related transactions for its customers in the United Kingdom. Effective October 16, the bank will disallow crypto-linked payments via debit cards and outgoing bank transfers. The decision was communicated to customers via email on September 26.
Further, a statement from a Chase UK spokesperson indicated that customers would be notified of a declined transaction if they attempted to engage in any crypto-related activities. The bank cited an uptick in crypto scams targeting UK consumers as the primary reason for the new restrictions. Data from Action Fraud, the UK’s fraud reporting agency, revealed that consumer losses to crypto fraud surged by over 40% in the past year, exceeding £300 million for the first time.
The move by Chase UK is not an isolated incident but part of a broader trend among UK financial institutions. Banks such as NatWest, HSBC, and Nationwide have also imposed similar restrictions. NatWest, for instance, has capped the amount that customers can send to crypto exchanges at £1,000 per day and £5,000 over a 30-day period.
Interestingly, the Financial Conduct Authority (FCA), the UK’s financial watchdog, has been facilitating discussions between banks and crypto firms. The FCA has recently introduced stringent regulatory measures aimed at protecting consumers from high-risk crypto investments.
The decision by Chase UK has sparked a flurry of reactions on social media platforms. While some users expressed outrage, others criticized the bank for limiting financial freedom under the pretext of investor protection. It’s worth noting that the latest restrictions will only impact around 2% of Chase’s total global user base, as the bank’s UK user base reached 1 million in September 2022.
JPMorgan, the parent company of Chase UK, has been exploring blockchain technology and even offers clients access to its blockchain-powered payment platform for European transactions. This makes the move by Chase UK all the more intriguing, given JPMorgan’s blockchain-friendly stance.
