Coinbase CEO Brian Armstrong has supposedly criticized JPMorgan Chase'the decision to block cryptocurrency-related transactions at its UK digital banking subsidiary, UK Chase.
Armstrong said private companies should not have the power to โde-platformโ the cryptocurrency industry and suggested the UK government should step in and regulate the industry, CNBC. reported Friday (September 28).
The CEO of the cryptocurrency exchange told the media outlet that he was disappointed with Chase UK's decision and highlighted the UK government's desire to attract cryptocurrency businesses to the country, according to the report.
Chase UK told customers in an email on Tuesday (Sept. 26) that starting Oct. 16, it will prevent them from making cryptocurrency transactions in a bid to protect them from the increasing number of frauds and scams associated with cryptocurrencies.
In his interview with CNBC, Armstrong asked for clarification on the bank's position and hoped it was a misunderstanding, according to the report. He added that the government should play a critical role in shaping the cryptocurrency regulatory landscape.
The UK government has expressed its ambition to position the country as a โWeb3 and crypto center", according to the report. This vision aligns with efforts by jurisdictions around the world, such as Dubai and Singapore, to attract cryptocurrency-related businesses.
According to the report, JP Morgan Chase is not the only UK financial institution implementing restrictions on crypto transactions. NatWest and HSBC have also taken similar steps, citing concerns over fraud and misuse of cryptocurrencies.
According to data from Action Fraud, UK consumer losses from crypto fraud have increased by more than 40% in the past year, surpassing ยฃ300 million for the first time, according to the report. The pseudonymous nature of cryptocurrencies makes it difficult for banks to track suspicious payments, contributing to their association with illicit activities such as money laundering and illegal gambling.
The United Kingdom has been working on developing legislation that would regulate retail trading of crypto assets, according to the report. The Financial Services and Markets Bill is an example of legislation that aims to subject crypto assets to regulatory oversight. However, it is not a comprehensive law designed specifically for cryptocurrencies. Treasury Secretary Andrew Griffith has suggested that the UK could approve a cryptospecific law for April 2024.
