Only days after a JPMorgan chief proclaimed cryptocurrencies were “here to stay”, the same bank then promptly closed the accounts of the founder of the world’s largest decentralised exchange protocol.
Uniswap’s Hayden Adams tweeted that JPMorgan Chase had closed his bank accounts without notice or explanation, adding he was aware of further individuals and companies who have been similarly targeted “simply for working in the crypto industry”.
“Thanks for making it a personal,” he added, referring to generic response from Chase Support.
It sounds like you've had a less than ideal experience, and we want to know where you are coming from. Let's work together on your concern. Will you please DM your name, zip, and any other information you'd like to share? ^LR https://t.co/znUu1VJn9r
— Chase Support (@ChaseSupport) January 23, 2022
American financial manager, policy advisor and a former CFTC Commissioner Brian Quintenz said this could be likely a shadow de-banking of crypto by bank examiners, with direction from the top.
“If the examiner told a bank that a certain customer is too risky and the bank ended that relationship, the bank is contractually prevented from telling that customer why,” he said.
Democratic Candidate for Congress, Matt West, commented: “Absolutely insane. This is part of why we need clear regulatory framework in the US re: crypto and banks.”
Adams’ bank accounts were closed last week, just a few months after the US Securities and Exchange Commission (SEC) reportedly started investigating Uniswap Labs about how investors use the decentralised exchange protocol and how it is marketed.
It also comes after Umar Farooq, Chief Executive Officer CEO of JPMorgan’s digital asset unit Onyx, was last week reported as enthusiastically declaring that cryptocurrency was ‘here to stay’.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.