Morgan Bank UK Bans Cryptocurrency Payments Citing "Fraud Prevention," Coinbase CEO Complains to UK Ministers
JPMorgan's UK branch has notified users via email that due to rampant fraud, it will prohibit users from conducting cryptocurrency-related payment transactions. The CEO of Coinbase has urged cryptocurrency holders in the UK to refrain from using the bank.
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JPMorgan Chase UK Branch Bans Crypto Payments
CoinDesk reported that users received an email stating that JPMorgan Chase's UK branch, Chase U.K, will prohibit UK customers from making crypto payments via debit cards, bank transfers, and other means starting from October 16th.
The email mentioned:
If we see you are engaging in payment activity related to crypto assets, we will decline the payment.
It also added that users are free to invest in cryptocurrencies using other banks or service providers. The main reason for banning crypto payments is due to the increasing number of scammers using crypto assets to defraud the public of substantial assets.
The UK branch stated:
We are committed to helping users ensure the security of their funds. We have observed an increase in crypto-related fraud cases involving UK consumers, hence we have decided to prevent users from purchasing crypto assets using debit cards or depositing funds to crypto platforms through the UK branch.
Coinbase CEO Calls It Unreasonable Behavior
Brian Armstrong retweeted the email content and pointed out that this is completely inappropriate behavior.
He tagged UK Prime Minister Rishi Sunak and UK Economic Secretary to the Treasury Andrew Griffith on Twitter and addressed them:
It seems that JPMorgan Chase UK Branch does not respect your policy objectives. What do you think? If UK cryptocurrency holders are to be treated this way, they should close their JPMorgan accounts.
Brian Armstrong visited the UK in April this year and had discussions with Andrew Griffith on regulatory suggestions:
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?
UK crypto holders should close their @Chase accounts if this is how they're going to be… https://t.co/n8OBxhtpcg
— Brian Armstrong 🛡️ (@brian_armstrong) September 26, 2023
Strict Crypto Regulations in the UK: A Summary
According to previous reports, the UK has implemented several regulatory measures this year:
DeFi Tax Reform! HMRC publicly consults on DeFi lending and staking taxation
End of Referral Code Masters? Rejecting the coin circle MLM culture, UK FCA will ban referral bonuses, and anti-inflation arguments
UK Financial Services and Markets Act FSMA officially in effect, will enhance crypto regulation, support safe adoption in the UK
Attention to promoting cryptocurrencies in the UK! Criminal liability for unauthorized personnel or unregistered with the FCA
Crypto meme warning! UK regulatory agency: Memes may be considered as investment promotion tactics
Regulatory Strengthening! UK FCA: New scrutiny rules for financial advertising will be implemented, companies must apply within the deadline