After a JPMorgan executive declared that cryptocurrencies were “here to stay,” the same bank swiftly cancelled the accounts of the founder of the world’s largest decentralized exchange system.
Hayden Adams of Uniswap tweeted that JPMorgan Chase had blocked his bank accounts without notice or explanation and that he was aware of additional individuals and firms who had been similarly targeted “just for working in the crypto field.”
“Thanks for making it personal,” he added, referring to a generic response from Chase Support.
According to Brian Quintenz, an American financial manager, policy expert, and former CFTC Commissioner, this might be a shadow de-banking of cryptocurrency by bank examiners with top-down guidance.
“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 a clear regulatory framework in the US re: crypto and banks.”
Adams’ bank accounts were frozen last week, just months after the US Securities and Exchange Commission (SEC) reportedly began an investigation into Uniswap Labs regarding how investors use the decentralized exchange technology and how it is marketed.
It also comes after Umar Farooq, CEO of JPMorgan’s digital asset business Onyx, was quoted last week as enthusiastically saying that cryptocurrency was “here to stay.”