NEW YORK — Stablecoin startups are facing increased scrutiny from major banks after JPMorgan Chase closed several accounts tied to firms in the sector, underscoring growing compliance pressures across crypto-related banking, a new report suggests.
The move followed a review by JPMorgan Chase & Co. that identified transactions linked to sanctioned or high-risk markets, including Venezuela, according to a report by Coin Central. The activity was flagged as a regulatory concern, prompting the bank to reassess its exposure and tighten controls on certain clients.
Coin Central reported that JPMorgan’s review also found weaknesses in customer identity verification at least one stablecoin startup, raising anti–money laundering concerns. Missing or insufficient know-your-customer standards conflicted with requirements for regulated financial institutions, the report said, increasing the risk profile for the bank’s payment channels.
Rising Chargebacks
Rising chargebacks from newly onboarded users added to the concerns, Coin Central stated. Such patterns are often associated with fraud or gaps in internal controls and can trigger additional scrutiny from banking partners. Together, the issues contributed to JPMorgan’s decision to terminate some relationships as it evaluated the stability and compliance posture of its crypto clients, according to Coin Central.
“The actions come as regulatory expectations for stablecoin issuers continue to expand globally,” Coin Central stated. “Banks providing services to crypto firms are under pressure to apply stricter screening and monitoring, with deficiencies at clients translating directly into heightened compliance risk. As a result, startups seeking access to traditional banking are facing more intensive reviews.”
New Standards in Place
In the United States, new federal standards introduced in 2025 have reshaped the operating environment for stablecoins. The rules set requirements for reserves, redemptions and reporting, raising the bar for compliance and increasing the demands placed on issuers and their banking partners, Coin Central said.
The report added that JPMorgan has continued to engage with digital asset services and work with crypto firms that meet its standards, but the account closures reflect a broader shift in the industry. As crypto usage grows in regions subject to sanctions or heightened oversight, banks are paying closer attention to transaction flows and partner controls.
