JPMorgan Freezes Stablecoin Startup Accounts Over Sanctions
Cointelegraph
JPMorgan reportedly froze accounts for stablecoin startups BlindPay and Kontigo due to exposure to sanctioned jurisdictions.Summary
JPMorgan Chase reportedly froze the bank accounts of two Y Combinator-backed stablecoin startups, BlindPay and Kontigo, after identifying business activity linked to sanctioned regions like Venezuela. The companies accessed JPMorgan's services via Checkbook, a digital payments firm. A JPMorgan spokesperson stated the decision was not due to opposition to stablecoins generally, noting they bank many such issuers. However, Checkbook's CEO suggested the freezes were also prompted by a surge in chargebacks resulting from rapid customer onboarding by the firms. This action occurs as JPMorgan deepens its partnership with Checkbook and while cryptocurrencies are increasingly used in Venezuela to counter currency collapse.
(Source：Cointelegraph)