[2019-03-13] Crypto Startup: JP Morgan Chase Closed Account with No Explanation

[gentlemand]

https://www.ccn.com/crypto-startup-jp-morgan-chase-closed-our-account-with-no-explanation

I've always been intrigued by bankiing's attitude towards crypto. It's rarely mentioned how tenuous the banking is of some of the biggest players. If Silvergate Bank decides to give up the ghost that might screw Coinbase, Kraken, Gemini and nearly 500 others.

As crypto gets bigger is the banking squeeze going to let up or increase? According to this article they were shut down the day after JPmorgancoin was launched.

[o_e_l_e_o]

JP Morgan aren't exactly known for their freedom of ideas and expression.

JP Morgan Coin isn't even a cryptocurrency. It is entirely centralized and under complete control of JP Morgan, and you aren't even allowed to use it unless you go through their extensive KYC procedures. Even then, it seems they are scared of competition from bitcoin. Perhaps they are much more generally scared of bitcoin, and its potential to completely upset the fiat banking system. Who knows. Either way, I'm sure they will continue to shut down personal and business accounts associated with, or found to be buying or selling, real cryptocurrency.

[Slow death]

the lack of clear regulations on crypto places banks in a very complicated position and they often must take disagreeable measures because they are afraid of governments and regulatory authorities. In that specific case I do not quite understand JP Morgan is an American bank, right? Is this company American too? in the US I know it is not forbidden to use crypto, but also have not yet legalized crypto, so that means banks can deny dealing with crypto related companies because the US government has not yet legalized bitcoin. Am I wrong?

[gentlemand]

the lack of clear regulations on crypto places banks in a very complicated position and they often must take disagreeable measures because they are afraid of governments and regulatory authorities. In that specific case I do not quite understand JP Morgan is an American bank, right? Is this company American too? in the US I know it is not forbidden to use crypto, but also have not yet legalized crypto, so that means banks can deny dealing with crypto related companies because the US government has not yet legalized bitcoin. Am I wrong?

Just because something's fully legal doesn't mean any bank has an obligation to touch it, but you're right. If I were running a bank I doubt I could be bothered to second guess future legislation. It's a lot less hassle to tell them to get stuffed. If every last detail was fully clarified I wonder whether there'd be a noticeable uptake from banks.

[squatter]

https://www.ccn.com/crypto-startup-jp-morgan-chase-closed-our-account-with-no-explanation

I've always been intrigued by bankiing's attitude towards crypto. It's rarely mentioned how tenuous the banking is of some of the biggest players. If Silvergate Bank decides to give up the ghost that might screw Coinbase, Kraken, Gemini and nearly 500 others.

As crypto gets bigger is the banking squeeze going to let up or increase? According to this article they were shut down the day after JPmorgancoin was launched.

Silvergate isn't the only player in this space, just the biggest. Metropolitan Bank has been banking with Coinbase and other cryptocurrency startups for years and they're actively pursuing partners in the space. I'm pretty sure there are others. There's too much opportunity for fledgling and niche banking institutions to ignore, and this is a time when cryptocurrency has much more mainstream legitimacy than years ago.

Speaking as a US resident, I think the banking squeeze for unregulated exchanges making international wires (like Bitfinex) will only get worse. For domestic users using MSB-licensed exchanges, you can hardly perceive any banking squeeze anymore. Bank transfers to/from Gemini or Coinbase are just like payroll transfers and bill payments -- fast with zero hassles.

[LeGaulois]

JPMorgan Chase was already in the blockchain and developed Quorum https://github.com/jpmorganchase/quorum
It's an Ethereum based distributed ledger and the JPM Coin will be issued on it but as they announced on its website it's still a prototype and it hasn't any approval from regulators, and it's a coin designed for B2B for institutions.companies.

[suzanne5223]

JPMorgan Chase was already in the blockchain and developed Quorum https://github.com/jpmorganchase/quorum
It's an Ethereum based distributed ledger and the JPM Coin will be issued on it but as they announced on its website it's still a prototype and it hasn't any approval from regulators, and it's a coin designed for B2B for institutions.companies.

They have already stated that their JPMcoin is for B2B right from the get go but what I'm surprise is them shutdown a crypto company account right after the creation of their own coin which means they want all crypto related company or transaction which have account with them to operate using their own issue coin.

Which is bad