JPMorgan Chase is reportedly freezing the accounts of two stablecoin startups, Blindpay and Kontigo, due to their involvement in activities in Venezuela – a country classified as high risk. This move highlights the increasing challenges of legal compliance as traditional banks work with cryptocurrency businesses in sensitive regions.
According to information, Blindpay and Kontigo used JPMorgan accounts for transactions that could increase compliance risks. JPMorgan’s decision reflects tighter monitoring of cryptocurrency activities and demonstrates a more cautious approach toward unstable markets and governments with high risk levels.
Experts note this as a general trend, with many financial institutions strengthening their review of transactions in risky areas. The incident also affected JPMorgan’s stock, which fell 0.80% to its lowest level in a month. Currently, Blindpay and Kontigo have not issued official responses.
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