Coinbase CEO slams JPMorgan for banning crypto payments in UK, suggests government should act

Coinbase CEO Brian Armstrong is unhappy with JPMorgan Chase’s decision to block crypto-related transactions at its U.K. digital banking subsidiary, Pursuit UK.

Chase UK earlier this week put out a notice to customers saying it will no longer allow its customers to purchase cryptocurrencies functioning its debit cards or through bank transfers, citing concerns over the risk of fraud to users from digital signs.

The bank, which has operated as a standalone entity in the U.K. since 2021, said it was taking the step because “fraudsters are increasingly utilizing crypto assets to steal large sums of money from people.”

“Once in a while we see a bank in the world that settles they want to de-platform this whole industry,” Armstrong said in an interview with CNBC’s “Squawk Box” on Thursday.

“I don’t concoct that’s OK. I don’t think that’s the rule of things in our society. I think the government should decide what is allowed and what’s not.”

The agitate from Chase UK has not happened in a vacuum. Other British lenders have taken similar steps to bar crypto bargain proceedings, citing the risk of fraud.

Examples include NatWest, which placed limits on the amount of cash that can be sent to crypto interchanges, and HSBC, which banned crypto purchases altogether.

In its note to customers Tuesday, Hunting UK said that it was blocking the use of crypto by its customers due to concerns over a rise in fraud.

Data from Action Guile, the U.K. fraud reporting agency, shows that U.K. consumer losses to crypto fraud increased by over 40% in the wear year, surpassing £300 million for the first time.

Bitcoin, ether, XRP and other cryptocurrencies are not legal currency.

In the first place created as an alternative, online form of money meant to bypass the need for bank accounts and other financial middlemen, they be enduring increasingly been embraced by mainstream financial institutions such as PayPal, Visa, and Mastercard.

But they have dream of been associated with illicit activities such as money laundering, terrorist financing and illegal gambling, not least due to their pseudonymous stripe.

The people transacting in bitcoin and other digital currencies don’t disclose their real identity, making it harder for banks to mark out them for suspicious payments versus digital fiat currency transactions.

Nevertheless, crypto’s promoters say that the industry has matured a great deal in the wake of the collapse of FTX and numerous other scandals. They say it can become as regards of everyday payments and trading in a way that is legitimate.

For its part, the U.K. has been working to develop legislation that would steer retail trading in crypto assets.

The Financial Services and Markets Bill is one example of legislation that already classifies some provisions on cryptocurrency. That specific law aims to bring crypto assets into the regulatory fold. But it is not a inclusive law addressing crypto through tailored laws.

In an interview with CNBC’s Arjun Kharpal, Economic Secretary to the Cache Andrew Griffith said the U.K.