Stablecoin

Gemini

JPMorgan

Startup

Partner

<h2 id="jpmorgan-freezes-accounts-linked-to-stablecoin-startups-over-sanctions-risks">JPMorgan Freezes Accounts Linked to Stablecoin Startups Over Sanctions Risks</h2><p>JPMorgan Chase has recently frozen accounts associated with two venture-backed stablecoin companies, BlindPay and Kontigo, amid concerns over exposure to sanctioned regions, particularly Venezuela. The move highlights ongoing challenges in the regulatory landscape surrounding digital assets and cross-border financial transactions.</p><p>The accounts belonged to these Y Combinator-backed startups, which primarily operate across Latin America. Both firms accessed JPMorgan’s banking infrastructure via Checkbook, a digital payments platform partnering with major financial institutions. The account freezes occurred after JPMorgan flagged business activities linked to high-risk jurisdictions subject to US sanctions, notably Venezuela.</p><p>A JPMorgan spokesperson clarified that the decision was not directly related to the stablecoins themselves. “This has nothing to do with stablecoin companies,” they stated. “We bank both stablecoin issuers and stablecoin-related businesses, and we recently took a stablecoin issuer public.” This indicates that the bank’s oversight focuses on compliance issues rather than the digital assets’ technology or market potential.</p><h2 id="chargeback-risks-and-risk-management-strategies">Chargeback Risks and Risk Management Strategies</h2><p>According to Checkbook CEO PJ Gupta, the account closures were partly driven by a surge in chargebacks linked to the rapid onboarding of customers over the internet. Gupta explained, “They opened the floodgates and a bunch of people came in,” implying that the spike in chargebacks raised red flags for JPMorgan’s risk management teams.</p><p>The partnership between JPMorgan and Checkbook has deepened, with the firms announcing in November 2024 that Checkbook would join the J.P. Morgan Payments Partner Network. This integration allows corporate clients to send digital checks, streamlining B2B transactions across sectors like legal services, government, and banking. Earlier in 2024, Checkbook expanded its B2B offerings to further establish its presence in the digital payments ecosystem.</p><p>Amid a broader movement towards cryptocurrency adoption, especially in regions like Venezuela where citizens increasingly turn to digital assets to hedge against inflation and strict government controls, JPMorgan’s cautious stance signals ongoing regulatory tension in the space. <a class="thirstylink" href="https://sovrn.co/1h8llaz" rel="noopener noreferrer nofollow">Cointelegraph</a> reached out to JPMorgan for comment but had not received a response at press time.</p><h2 id="related-developments-and-industry-tensions">Related Developments and Industry Tensions</h2><p>Previously, <a class="thirstylink" href="https://www.gemini.com/" rel="noopener noreferrer nofollow">Gemini</a> co-founder Tyler Winklevoss accused JPMorgan Chase of retaliation, asserting that the bank paused <a class="thirstylink" href="https://www.gemini.com/" rel="noopener noreferrer nofollow">Gemini</a>’s re-onboarding process following his criticism of JPMorgan’s data policies. This incident underscores the tensions between traditional banking giants and innovative crypto platforms, amid growing regulatory oversight.</p><p>Meanwhile, JPMorgan is reportedly exploring crypto-based financial products, including trading for institutional clients—a move reflecting increasing institutional interest and a more supportive regulatory environment for digital assets in the United States.</p><p>This article was originally published as <a href="https://www.cryptobreaking.com/jpmorgan-suspends-accounts-of-stablecoin/?utm_source=rss&amp;utm_medium=syndication&amp;utm_campaign=article_footer" rel="noopener noreferrer nofollow">JPMorgan Suspends Accounts of Stablecoin Startup Amid Sanctions Concerns</a> on <a href="https://www.cryptobreaking.com/?utm_source=rss&amp;utm_medium=syndication&amp;utm_campaign=article_footer" rel="noopener noreferrer nofollow">Crypto Breaking News</a> – your trusted source for crypto news, Bitcoin news, and blockchain updates.</p>

JPMorgan Suspends Accounts of Stablecoin Startup Amid Sanctions Concerns

Table of Contents

Crypto Breaking News

Other articles published on Dec 27, 2025

What is Gift Fest? Telegram’s Latest Trending Mini-app

What is Run For Pi? Pi Hackathon 2025 Third Place Winner

Avalanche Powers Onchain Prize Redemptions for MyPrize Social Casino Platform

Hyper Foundation Proposes Burning $900M Worth of HYPE

Solana in 2025: A Look at the Network’s Biggest Developments

ION Weekly Roundup: Key Updates as ION Migration Set to Kick Off

Join our free newsletter for daily crypto updates!