Chase UK recently announced that it will no longer allow its customers to purchase cryptocurrencies using its debit cards or through bank transfers due to concerns over fraud. This decision has been met with criticism from Coinbase CEO Brian Armstrong, who believes it is not appropriate for private companies to “de-platform” the crypto industry. Armstrong suggests that the UK government should pay attention to Chase UK’s move, even though the country aims to become a “Web3 and crypto hub.”
Armstrong’s objections to Chase UK’s ban on crypto-related transactions stem from his belief that the government should determine what is allowed and what is not. He argues that occasional decisions by banks to remove support for the entire crypto industry are not in line with the principles of society. Other UK banks, such as NatWest and HSBC, have also taken similar steps, citing the risk of fraud associated with cryptocurrencies. These moves by financial institutions reflect a broader trend of heightened awareness and concern regarding the use of digital tokens for illicit activities.
Despite these challenges, the UK government has been working towards the development of legislation to regulate the trading of crypto assets. The Financial Services and Markets Bill is one example of legislation that seeks to bring crypto assets under regulatory oversight. However, the country has not yet implemented comprehensive laws specifically tailored to cryptocurrencies. Armstrong hopes that Chase UK’s decision is a misunderstanding that will be addressed in the coming weeks, as the UK aims to position itself as a crypto-friendly jurisdiction and attract businesses in the industry.