UK Government Urged to Review Chase Bank's Anti-Crypto Policy
Bitcoin Policy UK has urged the UK government to reconsider Chase Bank's recent decision to block all cryptocurrency payments. The crypto advocacy group has voiced concerns that this move contradicts the government's stated goal of establishing the UK as a prominent crypto asset hub.
Bitcoin Policy UK Appeals Against Bank's Crypto Payment Policy
Last week, Chase Bank, a registered trademark and trading name of JP Morgan Europe Ltd., sent notifications to its UK customers, informing them of the forthcoming closure of crypto-related transactions starting on October 16. This policy shift has prompted Bitcoin Policy UK to appeal against the bank's crypto payment policy.
Bitcoin Policy UK's Plea to the Treasury
Bitcoin Policy UK formally addressed the Economic Secretary to the Treasury, Andrew Griffith MP, in a letter dated September 28. The advocacy group expressed deep apprehension regarding Chase Bank's abrupt refusal to process customer payments involving cryptocurrencies. In their letter, they emphasized:
"It is, of course, the stated policy of this government that the UK become a crypto asset hub, but it is hard to square this policy aim with the actions of this UK-regulated bank."
Britain's Prime Minister Rishi Sunak, while serving as Chancellor of the Exchequer in April last year, declared, "It's my ambition to make the UK a global hub for crypto asset technology."
The sentiment was echoed by Chief Secretary to the Treasury, John Glen MP, who affirmed the government's vision for the UK to be the best place globally to initiate and expand crypto-related businesses, stating in April last year that the British government wants the UK to be “a global hub, the very best place in the world to start and scale crypto-companies.”
Less than nine months later, Griffith proceeded to publish proposals for crypto asset regulation and stated at the time that the British government remained “steadfast” in its commitment to grow the economy and enable technological change and innovation, including “crypto asset technology.”
The advocacy group noted that "the purchase, ownership, and sale of crypto assets are entirely legal in the UK," with "most crypto exchanges operating under regulatory oversight." The group stated:
"It is alarming on many fronts to witness a bank such as Chase, regulated by the FCA and the PRA, deciding arbitrarily to prevent its customers from lawfully spending their money and in a sector that is clearly supported both as a matter of government policy and increasingly regulated by the same bodies that regulate that bank itself."
FCA and PRA Regulation
Chase Bank, regulated by both the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), claims that its policy change aims to safeguard customers' money from fraud and scams. However, Bitcoin Policy UK cited data from blockchain analytics firm Chainalysis, refuting Chase's assertion that the crypto sector is disproportionately prone to fraudulent activities compared to other sectors.
Concerns About Financial Freedom
The advocacy group further expressed concerns about a growing trend in the UK towards financial censorship and the curtailment of financial freedom. They asserted that UK citizens should have the unquestionable right to freely use their funds from their bank accounts for any lawful purpose. In their concluding statement, Bitcoin Policy UK emphasized:
"In short, this is an arbitrary and capricious policy decision made by a bank subject to UK regulation that will prevent UK citizens from spending their money lawfully and as they see fit. It is a highly questionable step for a UK-regulated bank to take, and we urge the Minister and the Government to review this decision, particularly in light of the stated policy aims of this Government."
Coinbase CEO Weighs In
Notably, last week, Brian Armstrong, the CEO of Coinbase, also criticized Chase Bank's anti-crypto policy. He urged Chase Bank customers to contemplate closing their accounts in protest.
Do you think Chase Bank will reverse its decision to decline crypto transactions? Please share your thoughts and opinions in the comments section below.
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