Coinbase CEO says Chase UK’s ban on crypto “totally inappropriate”

abdelaziz Fathi

Coinbase CEO Brian Armstrong criticized Chase UK’s decision to restrict cryptocurrency-related transactions in the UK. He called the move “totally inappropriate” and expressed his disagreement with the bank’s decision to ban its UK customers from conducting debit card or wire transfers related to cryptocurrencies.

Coinbase CEO Brian Armstrong

Brian Armstrong called on UK officials, including Prime Minister Rishi Sunak and Economic Secretary Andrew Griffith, to review Chase UK’s decision to restrict cryptocurrency-related transactions. CEO of America’s largest crypto exchange hopes that the bank might reconsider its decision after a closer examination by government officials.

Armstrong’s tweets suggested that crypto firms will soon have a clear rulebook for operating in the UK and also underlined the firm’s intentions for international growth as an “existential priority”.

Armstrong added that his recent meeting with UK officials focused on sensible regulations to protect consumers and support economic growth in the crypto market. He stated that Europe is already several steps further down the road, with its Markets in Crypto-Assets (MiCA) regulation set to come into force later this year.

Chase UK, the British digital bank owned by JPMorgan, said earlier this week it will prohibit its customers from conducting cryptocurrency transactions, starting from October 16. This prohibition includes using debit cards for crypto purchases or conducting outgoing bank transfers for crypto-related activities.

JP Morgan’s neobank cites an increase in scams and fraud in the cryptocurrency space, as well as reports of rising crypto fraud-related losses in the UK. Data from Britain’s fraud reporting agency Action Fraud, shared by the law firm RPC, indicates that crypto fraud in the UK surged by 41% in the previous year, reaching a record high of £306 million ($372.3 million).

Chase’s decision follows several of the biggest UK banks banning ‎cryptocurrency transaction over the past months, as part of a global crackdown ‎led by major lenders and credit card issuers. While Chase is not the first, but the action exacerbates pressures and make it more ‎difficult for enthusiasts to buy into the market as more other banks could shortly ‎follow suit.‎

Following the bankruptcy of FTX, Santander UK, Lloyds, Barclays and RBS cut off card purchases and transactions involving cryptocurrency. The banks fear that allowing purchases of cryptocurrencies using money ‎borrowed on credit cards could leave them on the hook if the buyers’ bets were ‎wrong and couldn’t repay their debts.‎

Read this next

Digital Assets

JPMorgan’s stablecoin ventures into interbank transactions

JPMorgan Chase & Co.’s proprietary digital token, JPM Coin, is set to expand its use case by facilitating interbank transactions on Partior, a blockchain ledger developed in collaboration with DBS Bank, Temasek, and Standard Chartered.

Retail FX

Interactive Brokers’ client base surges past 2.5 million

Interactive Brokers LLC (NASDAQ:IBKR) saw 1.89 million daily average revenue trades, or DARTS, in November 2023 compared to 1.93 million transactions in the prior month. The figure is three percent lower on a yearly basis, and also dropped slightly from a month earlier.

Executive Moves

Andrew Gibson launches TimberFX brokerage brand in Cyprus

After nearly two years at Tavira Securities as Head of Product Development, industry veteran Andrew Gibson is launching a new FX brokerage business based out of Cyprus.

Market News

US Dollar’s Trajectory Amidst Seasonal Trends and Economic Indicators in December 2023

As we traverse the final stretch of 2023, the noteworthy depreciation of the US dollar dominates the financial landscape

Inside View

Unlocking the Financial Potential of SMEs: Is FinTech the Key?

The rise of the gig economy for early-stage startups and freelancers has highlighted the increasing importance of small-scale business transactions and banking requirements. Unfortunately, this has also exposed a significant gap in the SME banking landscape.

Digital Assets

South Africa’s FSCA receives 138 crypto license applications

The Financial Sector Conduct Authority (FSCA) of South Africa is currently processing a slew of applications from cryptocurrency companies seeking operational licenses.


Exclusive Interview with Greg Rubin, Head of Axi Select: Unveiling the Future of Capital Allocation in the Financial World

Today, we are thrilled to kickstart another series of exclusive interviews with top executives in the financial services industry, hosted by our FinanceFeeds Editor-in-Chief, Nikolai Isayev. Our next guest is none other than Greg Rubin, the mastermind behind Axi Select.

Digital Assets receives UK’s EMI license, paving way for regulated expansion

Cryptocurrency exchange has been authorized as an Electronic Money Institution by the United Kingdom’s Financial Conduct Authority (FCA).

Digital Assets

Ripple’s Metaco joins Zodia Custody’s network for connectivity with Layers 0 and 1

“As the industry undergoes a pivotal transformation, our networked infrastructure is dedicated to standardise, govern and connect institutional digital asset flows — an essential step in forging use cases that transcend individual companies.”