Coinbase Global Inc (NASDAQ:COIN) CEO Brian Armstrong criticized JPMorgan Chase's recent decision to block cryptocurrency-related transactions in its UK digital banking subsidiary, Chase UK.
Armstrong expressed concern about private companies having the power to "de-platform" the crypto industry and called for government intervention and regulation to address the issue.
The Coinbase CEO emphasized the importance of a clear regulatory framework for crypto businesses in the UK and urged government officials to review Chase UK's decision.
Chase UK had notified its customers that it would block cryptocurrency transactions starting October 16, citing concerns about increasing fraud and scams associated with cryptocurrencies. This move aligns with similar restrictions implemented by other UK financial institutions like NatWest and HSBC.
Crypto fraud in the UK has surged by 41% in the past year, reaching a record high of £306 million ($372.3 million), making it challenging for banks to trace suspicious payments due to the pseudonymous nature of cryptocurrencies.
The UK government is working on legislation to regulate retail trading in crypto assets, aiming to pass a crypto-specific law by April 2024.