JP Morgan was the US bank that froze the bank accounts of the startup Kontigo, which supports Venezuelan users with stablecoins such as USDC. The financial institution was also behind the blocking of accounts of the Brazilian Blindpay, interrupting its operations in dollars as part of a preventive action for protection and regulatory compliance.
The measure directly affects Kontigo, which offered dollar conversion and management services for users in Venezuela and other Latin American markets. According to the sourcesthe bank detected transactions that could be linked to entities under sanctionswhich led to the suspension of the accounts, as reported by CriptoNoticias.
This move reflects a broader trend in the financial sector: banks strengthen their compliance protocols and they distance themselves from cryptocurrency clients considered high risk to avoid regulatory consequences, moving away from the spirit of decentralization.
In this case, JP Morgan flagged transactions potentially linked to entities under sanctions, which led to the freezing of accounts. The measure is aligned with pressure from organizations such as the Office of Foreign Assets Control (OFAC)which closely monitor financial operations related to digital assets.
Blindpay, another of the affected startups, offers a stablecoin linked to the dollar that allows you to make cross-border payments from Venezuela. Its proposal seeks to facilitate fast, low-cost transactions in an environment marked by financial restrictions. However, the suspension of its bank accounts at JP Morgan represents a blow to its operations and to the users who depend on its services.
The measure does not target stablecoins
A JP Morgan spokesperson clarified that the measure It was not directed against stablecoin companies: “This has nothing to do with stablecoin companies,” he noted. He also highlighted that the bank works with issuers and related businesses; He even commented that they had recently taken a stablecoin issuer to the public market. However, JP Morgan’s stance against native cryptocurrency companies that offer stablecoin rewards is well known.
The decision highlights the operational difficulties faced by startups. Without access to dollar bank accounts, projects like Kontigo could interrupt part of their services.