Coinbase Director Criticizes Banking Giant for Crypto Payment Ban

Co-founder and CEO of Coinbase Brian Armstrong condemned the planned move by Chase UK, a subsidiary of the US-based multinational financial services giant JPMorgan, to restrict its clients in the United Kingdom from conducting cryptocurrency transactions.

The head of Coinbase advised British crypto owners to close their accounts with Chase in response to the bank’s ban.

Armstrong Unhappy with Chase UK Crypto Restrictions

Brian Armstrong sharply criticized the crypto restrictions of Chase UK on X, labeling the bank’s actions as ‘completely inappropriate.’ The CEO of Coinbase pointed out UK Prime Minister Rishi Sunak and Secretary of State for Business and Trade Andrew Griffith, stating that it seems Chase UK’s decision diverges from their political goals.

Sunak and Griffith want to see the United Kingdom establish itself as a leading global cryptocurrency hub. The Financial Services and Markets Bill, which paves the way for crypto regulation, received royal assent after the majority of members of the House of Lords voted for the bill.

Armstrong previously praised the UK’s efforts to create clear crypto rules and ensure investor safety while his company works on expanding in the UK. Meanwhile, the head of Coinbase urged crypto owners in the UK to close their accounts with Chase as a way to protest the bank’s new crypto policy.

– I really hope there is more to this story than meets the eye and that it does not reflect the true view of Chase UK – wrote Armstrong.

UK Banks Still Hostile Towards Crypto

Chase UK sent a notice to its clients on September 26, stating that the bank is changing its stance on crypto. According to the financial institution, users in the UK will no longer be allowed to conduct crypto transactions using the bank starting October 16, 2023, as such activity will be declined.

The bank stated that it made the decision to protect users as an increasing number of fraudsters are using crypto to steal from people. Chase UK further directed users interested in investing in crypto to use other banks but warned that they could lose money due to fraud.

Meanwhile, Chase UK is not the first bank to take such measures against cryptocurrencies. There have previously been reports of other leading financial institutions in the United Kingdom, such as Nationwide, HSBC, and Lloyds Banking Group, which have restricted users from using their credit cards to purchase cryptocurrencies.