Brian Armstrong, the CEO of Coinbase, one of the US' largest cryptocurrency exchanges, has criticized JPMorgan Chase UK's recent decision to prohibit its customers in the UK from engaging in crypto-related transactions. Armstrong expressed his discontent on X (formerly Twitter) on September 26, labeling Chase Bank's actions as "totally inappropriate".

Armstrong Requests Chase UK's Crypto Transaction Ban Investigation

In his tweet, Armstrong called upon UK crypto holders to consider closing their accounts with Chase UK if they continue to face such restrictions. He also urged UK officials, including Prime Minister Rishi Sunak and the Economic Secretary, Andrew Griffith, to investigate whether Chase UK's actions align with the country's policy objectives.

Armstrong maintained a hopeful tone. He suggested that there might be more to the situation than initially apparent, having stated: "Really hoping there is more to this story than meets the eye, and that this does not reflect Chase UK's actual view."

Chase UK confirmed its decision on September 26. It cited that a significant level of fraud in the crypto space as the primary reason for the ban. The bank clarified that customers attempting to make crypto-related transactions would receive a declined transaction notification.

Coinbase officially supports the UK market alongside the US, Europe, and Canada, as stated on its website. The platform has been actively pursuing its expansion efforts in the UK, as evidenced by its commitment to its growing presence in the region, announced in April 2023. The firm continues to expand globally. However, it faces legal challenges in its home country.

In June 2023, the U.S. Securities and Exchange Commission filed a lawsuit against Coinbase, alleging violations of securities laws. This ongoing legal battle further underscores the evolving regulatory landscape surrounding cryptocurrencies and exchanges worldwide.

Traditional Banks Tighten Grip on Cryptocurrency Activities

JPMorgan's retail branch, Chase UK, has joined Santander and NatWest in prohibiting cryptocurrency transactions, reflecting a global trend. While officially attributed to surging cryptocurrency-related crimes, it underscores traditional institutions' broader efforts to enhance security within the digital asset sphere.

Chase UK announced on Tuesday its decision to block all cryptocurrency transactions for customers from October 16. It cited a rising wave of scams targeting UK consumers. This move signifies a proactive approach to safeguarding customers, despite the undisclosed specifics of the scams. It aligns with a worldwide movement to foster a secure environment for cryptocurrency investors amid evolving financial landscapes.