JPMorgan closed Uniswap’s founder accounts because the major banks don’t have such a public approach to the crypto industry. Banks like JPMorgan operate in the shadows by preventing other crypto customers from having accounts so let’s read further into today’s latest crypto news.
Uniswap’s founder Hayden Adams revealed that JPMorgan closed his bank account with no notice or explanation. He added that he knew how many individuals and companies were targeted simply because they work for the crypto industry before exclaiming they made it personal. This could be the perfect way for banks to crack down on crypto without all the publicity and this was even suggested by former Commodity futures trading commission commissioner Brian Quintenz who said:
“Likely a shadow de-banking of crypto by @federalreserve or @USOCC [Office of the Comptroller of the Currency] bank examiners, with direction from the top.”
🧑💻 I know many individuals and companies who have been similarly targeted simply for working in the crypto industry
🚀 Thanks for making it a personal
— hayden.eth 🦄 (@haydenzadams) January 23, 2022
Quintenz added that if the examiner told a bank that a customer is risky and the bank ended the relationship, the bank prevented from telling the customer why. He cited a journal article by pro-crypto senator Cynthia Lummis to make the point. Lumis claimed that the new chiefs at the FED were holding back the fintech and crypto innovation especially in Wyoming where the SPDIs were initially granted a green light to operate as fully regulated banks.
There were other replies to Hayden’s complaint and many of them stated that they have also been blocked by banks and had accounts closed for dealing with crypto. Chase support didn’t respond to the tweet but asked the Uniswap founder to use the supporting messaging system and clear the experience that he had with the bank. The Democratic Candidate for Congress, Matt West commented:
“Absolutely insane. This is part of why we need a clear regulatory framework in the US re: crypto and banks.”
The CEO Of JPMorgan’s digital asset unit said that crypto is here to stay but maybe not for a lot of customers as it seems. It is not just the US banks that are coming down on crypto investors. Last year we saw Australian Investors suing Westpac and the ANZ Bank for closing his accounts which resulted in the loss of funds at the time. Banks have a great weapon against crypto and their actions can only be used to expel customers without the bank having to explain itself.
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