Coinbase CEO Brian Armstrong negatively assessed JPMorgan Chase’s decision to impose a ban on financial operations involving the use of cryptocurrencies in the British subsidiary of Chase UK digital banking.
Brian Armstrong, commenting on the decision of one of the largest American creditors, said that private companies should not have the right, as he put it, to de-platform the digital currency industry. Also, in his opinion, the government of the United Kingdom should intervene in the situation and begin to regulate the sphere of cryptocurrencies.
The CEO of Coinbase told the media that he was disappointed by the decision of the giant of the American banking sector to ban transactions with virtual money in the British subsidiary. In this context, he noted the desire of the UK government to attract crypto business to the country.
Chase UK this week informed customers by email that from October 16 they will lose the opportunity to make financial transactions using digital currency. The bank stated that the relevant decision was made in order to protect consumers from the growing number of fraudulent activities related to cryptocurrency.
Brian Armstrong said that the financial institution should detail its position and expressed the hope that the ban on transactions with digital currency is a misunderstanding. He also noted that the main role in the formation of the regulatory framework governing the functioning of the crypto industry should belong to the government.
The British authorities have officially announced their desire to position the country as a Web3 and crypto center. This concept is consistent with the efforts of jurisdictions around the world, including Singapore and Dubai, to gain business related to cryptography.
JPMorgan is not the only financial institution that prohibits cryptocurrency transactions in the United Kingdom. NatWest and HSBC have also made similar decisions. Banks explained their position by fears of fraud and misuse of digital currencies.
Over the past year, the losses of UK residents from crypto fraud have increased by more than 40%. The total amount of damage exceeded 300 million pounds ($365 million). The relevant data was published by Action Fraud.
Experts say that the so-called pseudonymous nature of cryptocurrencies makes it difficult for banks to track suspicious payment transactions. This provokes the scaling up of activities such as illegal gambling and money laundering.
Currently, the UK is working on creating legislation that could serve as a regulatory framework for regulating the process of retail trade in crypto assets. The bill on financial services is an example of a legal regulation designed to introduce the mentioned assets into the area of supervision of regulators. However this is not a comprehensive legislative act created specifically for cryptocurrencies. Economic Secretary to the Treasury Andrew Griffith Andrew Griffith, suggested that by April next year, a law concerning virtual currencies could be passed in the United Kingdom.
As we have reported earlier, UK Watchdog Targets Finfluencers and Crypto Memes.