Topic: Bitcoin Terrifies Banks: Hypocritical JP Morgan is Blacklisting Crypto Firms (Read 383 times)

Don't see why. Every bitcoin exchange & payment processor relies on banks. People buying filthy fiat with their bitcoin = more business.

Maybe JPMorgan blacklisting these firms are exactly as a result of the creation of their own internal cryptocurrency, in order to lessen the competition.

But anyhow, their stance on bitcoin has fluctuated and has always been quite ambiguous to begin with. I don't think that them blacklisting bitcoin companies will necessarily have a significant impact on the market, especially when it comes to the individuals that actually use the bitcoin blockchain.

Do I think that they have a valid concern from the front of AML? Probably not. Which is a part of the reason why I tend to agree with the other people here, it simply makes no sense when a corporation is trialling their own coin and actively trying to disadvantage others - seems like anti-competitive behaviour to me.

This is nothing new for JP Morgan. If they can't ensure profit, or can't ensure that they'll be benefiting into supporting something or accepting something for their business, they won't do it no matter how negative their public image can get. Crypto services and institutions are among the most prone to hacks, thefts and other ill-fated events that can happen to a business, so I guess this is just somewhat protecting their own business from getting burned. Nevertheless, creating their own cryptocurrency while being hostile towards other crypto coins/services etc. just proves that they are hypocrites of the highest degree.

It's a shame that solid crypto businesses are having troubles with operation in the US. JP Morgan will suffer from this stuff more than the crypto projects, IMO. This is just agony, a desperate attempt to keep doing what they're doing and not embracing necessary innovations. This bank has been accused in a coulple of money laundering scandals as well, so I find it unfair that it's even still around. Anyway, I am sure there are other banks in the US, so the crypto businesses will be able to find a solution. If not - maybe it's time to say bye-bye to America and bring innovation to other, less posh countries.

i think they have been mostly scared of falling behind and becoming obsolete rather than wanting any monopolization. that may come later as an attempt which i guess will fail but the main reason what what i said, with bitcoin growing every day and them seeing how the transaction volume of bitcoin has been growing they must be scared.

I'm guessing they want to monopolize the industry with their own coin, or they are scared of the decentralization of bitcoin and other cryptocurrencies? If JP is able to close and restrict people that are involved with crypto frms from having a bank account, that is very powerful for when their coin comes out, especially if it is easily liquidable/transferrable with their bank.

This is either another chapter of a big company trying to monopolize a market or the typical centralization vs decentralization clash. Quote from the article says it the best.

JPM is a national bank. meaning it has to adhere to strict legal tender laws of only promoting dollars. JPM wont be seen selling baked beans at it bank teller counter. nor would it be selling dildo's. its business model has to stick to fiat.

JP morgan have always been like this.
its nothing new
they closed accounts related to medical cannabis retailers. companies in the sx industry even places that just sell condoms..

so its none-news.
also banks dont suffer due to bitcoin. when on person buys bitcoin from another. the FIAT never actually gets burned/evaporates. all that happens is it moves bank accounts. from buyer to seller.
financially bitcoin is just the same business as selling an iphone. funds move from buyer to seller.

however banks do have a headache in regards to SARs reporting and the bureaucracy of investigating and KYC stuff. so with so much drama around american regulations requiring extra due dilagance and identifying those involved. and the reluctance of bitcoin businesses to disclose information about their clients. its easy to see that headaches emerge.

much like for instance kraken, using JPMC as an account not for exchange trading. but for paying staff salaries. normally fine for normal business.
but with kraken being a MSB and staff saleries resulting from profits of krakens exchange. you could see how JPM would have headaches trying to KYC/AML the funds going into kraken salaries account coming from the exchange account. and then paid out to staff. all while probably kraken wont wont to disclose the origins of the funds from the exchange account. thus headaches in regards to AML

but here is the ultimate lesson.
if your playing with fiat. follow fiat rules
if you dont like fiat rules dont play with fiat.

bitcoin is a option to store funds in a way that a bank or other party cant tell you what to do with your funds
(hense why i personally detest LN, as its a multiparty concept requiring co authorisation and participation of others to decide if my payments get processed.. just like banking)

so best option if you want to sever ties to fiat. dont handle fiat. get your staff to accept salaries in bitcoin and then get your staffs local shops/landlords to accept bitcoin. thus avoid fiat.. as that was one of the early aspirations of bitcoin before the flip from bitcoin innovator to fiat investor around 2013

The article said that they will fire any employees cought trading crypto, this mean that JP Morgan afraid of bitcoin. They afraid that people prefer like to use bitcoin rather than fiat money. If JP Morgan think that bitcoin is useless then they will not have such behaviour, JP Morgan behave like that because bitcoin is something usefull and can become something big and popular in the future.

They can block whatever they want but it won't stop the inevitable from happening. Crypto is going to flip banks as they will see when the virus spreads

I am not sure if that is considered fear? more like ownage? It feels like they are wanting to create an exclusive coin that is bound to the bank? I am just guessing given they were into crypto not long ago.

I don't think that they are clueless. For sure they know the effects of crypto that's why JP Morgan are afraid of what it can really bring to their banking system. I mean, just imagine if half of their customers will suddenly shift to bitcoin or any cryptos as a store of value as a hedge, they will literally lost billions of profits. So now JP Morgan is blacklisting everyone, not just crypto firms but perhaps even individuals who they suspected of dealings with crypto in their bank.

This is just another reason why centralized services like this must be disrupted. They can make anti-competitive decisions like this and it is supported by governments, because they are in bed together. The whales in Bitcoin should put funds together to fund a Crypto currency Bank that support Crypto currency business or we should crowd fund such a Bank to offer businesses like this another alternative.

If they do not want that Crypto business, give it to people that wants it.    

Yeah it's really just a matter of opinion. They could definitely be scared on some level, but at the scale crypto currently is now, I don't see them actively going out of their way to not earn money. The only conclusion I can think of, therefore, is that there's not much money to be made off crypto clients.

I also get the money laundering angle, but the way I see it, they need to put on a front for regulators. No matter what shady things they are doing behind the scenes, they still have to implement AML procedures for their clients (or most of them anyway lol). Think of it this way: if they do money laundering themselves, they earn money despite the risks. If one of their clients do money laundering, they get investigated and penalized. It's only natural for them to not want clients to launder money.

They are preparing for worst scenario, and for sure they believe if they don't adopt cryptocurrency they will slowly die and those who adopted already will replace them on top. JPM, maybe already realized this things and its good for us since many businesses will also study the market and start making their own currency. This is what expected by many institution that major banks will use blockchain technology in the future.

Even while they have to deal with compliance, I still leaning towards them being scared of crypto thus their negative reaction to it. They may be corporate giants but crypto may still be a threat to them. Surely they're not stupid and can see the potential of crypto technology. That is why they have created their own coin despite being against crypto.

As said in the article:


Looks like they've been trying to divert attention by espousing negativity on crypto so they may redirect the blame.

i am wondering whether the actions like this are going to open up some sort of competition. like any other business, banks are also competing with each other so when one big one rejects a certain group of businesses it can open up room for others to pick them up and increase their own revenues. it would be interesting to see how this changes in the future too, as bitcoin grows and more and more businesses start up.

Well the coin they're creating is hardly a cryptocurrency. It's going to be controlled and centralized, so this isn't very hypocritical on their part. They basically want all the perceived benefits while still being in control.

As for being terrified, I find it more likely that they're terrified of the overhead, which this guy concurs with:


Either way, let them lose out on business if they want. Lots of people here seem to hate banks and at the same time want them to give in to their whims lol.

Yeah, they afraid that crypto will be successful and the banking institutions will be collapsed  but as far as I know crypto wont make bank disappear , and if they afraid of changes then the nation won't be develop to a better future, I am furious to see how JPM handle this situation, seems like JPM betray the all the crypto users, if they do a better research then they will know crypto could be very useful for them

Institutional organizations included banks don't want to compete with dominant cryptos. Maybe that's the key reason behind these questions. They are afraid of change and innovation that can be the biggest threat to their old business model. JPM is not an exception here.