The British government has been encouraged by Bitcoin Policy UK to reconsider Chase Bank's decision to reject all cryptocurrency payments. The U.K. being a hub for crypto assets is, of course, the government's declared ambition, but it is difficult to reconcile this goal with the conduct of this U.K.-regulated bank, according to the cryptocurrency advocacy group.
Call for UK Government to Review Chase Bank's Crypto Policy
On September 28, Bitcoin Policy UK wrote to Economic Secretary to the Treasury Andrew Griffith MP to voice its concerns on Chase Bank's new decision to restrict all cryptocurrency payments. J.P. Morgan Europe Ltd. has registered the trademark and business name Chase. Last Monday, the British bank warned its customers in the UK that starting on October 16, it will no longer accept any payments relating to cryptocurrencies.
The crypto advocacy group said, "We write to express our deep concern regarding the recent decision by Chase Bank to decline customer payments relating to crypto assets," adding:
The U.K. becoming a hub for crypto assets is, of course, the government's declared ambition, but it is difficult to reconcile this goal with the conduct of this U.K.-regulated bank.
In April of last year, Rishi Sunak, the prime minister of Britain, declared: "It's my ambition to make the U.K. a global hub for crypto asset technology." At the time, he served as the nation's Chancellor of the Exchequer.
In their letter, Bitcoin Policy UK highlighted former Economic Secretary to the Treasury and Chief Secretary to the Treasury John Glen MP, who said in April 2017 that the British government wanted the U.K. to be "a global hub — the very best place in the world to start and scale crypto-companies." The letter continued that less than nine months later, Griffith published his own proposals for regulating crypto assets and declared at the time that the British government was "steadfast" in its commitment to promote economic growth and support technological advancement and innovation, including "crypto asset technology."
The advocacy group for cryptocurrencies stated that "the purchase, ownership, and sale of crypto assets are lawful activities in the U.K.," and added that "the majority of the exchanges offering crypto asset services are themselves regulated." They emphasized:
It is concerning on many levels to see a bank like Chase, which is subject to regulation by the FCA and the PRA, arbitrarily decide to forbid its customers from using their money in a way that is legal, in a sector that is unmistakably supported by government policy, and one that is increasingly governed by the same organizations that oversee the bank itself.
The Bank of England's Prudential Regulation Authority (PRA) prudentially regulates and oversees financial services firms, while the Financial Conduct Authority (FCA) is Britain's main financial regulator.
The blockchain analytics company Chainalysis' research refutes Chase's claim that the cryptocurrency industry "is particularly fraudulent compared to any other," according to Bitcoin Policy UK. Chase stated in a letter to clients that the change in policy is necessary to keep customers' money "safe from fraud and scams."
The crypto advocacy group raised additional worries, saying Chase's choice is "yet more evidence of a concerning trend in the U.K. towards financial censorship and the restriction of financial freedom." Additionally, the organization said that "it should not be controversial to affirm that UK citizens ought to have the right to spend their own money freely from their bank accounts for any lawful purpose."
The letter from Bitcoin Policy UK states, "In short, this is an arbitrary and capricious policy decision made by a bank subject to U.K. regulation, that will prevent U.K. citizens from spending their money lawfully and as they see fit," highlighting:
We implore the Minister and the Government to rethink this choice, especially in light of the Government's stated policy objectives, as it is a highly dubious move for a U.K.-regulated bank.
Brian Armstrong, CEO of Coinbase, slammed Chase's anti-crypto policy last week and urged clients to think about cancelling their accounts.
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