JPMorgan to Block Crypto Payments from Chase UK Bank Accounts
JPMorgan Chase & Co.’s UK digital banking subsidiary, Chase UK, has recently announced that it will prohibit its clients from conducting cryptocurrency transactions using debit cards or outgoing bank transfers, effective October 16th. This decision, communicated to customers through an email notification, comes as a response to the surge in fraudulent activities and scams associated with cryptocurrency transactions.
Chase Bans Crypto Payments
In the email sent to its clientele, Chase UK stated, “To enhance the security of your funds and protect you from potential frauds and scams, we are implementing changes to the types of payments permitted through Chase. Specifically, we will decline any payments related to crypto assets.“
Chase UK, which commenced operations in September 2021, has rapidly gained popularity, amassing one million customers within its inaugural year. This decision aligns it with other financial institutions in the UK, such as HSBC Holdings Plc and Nationwide Building Society, which have also tightened restrictions on retail customers’ access to cryptocurrency assets this year, citing the associated risks.
The parent company, JP Morgan Chase, the largest bank in the United States with assets exceeding US$3 trillion, introduced its app-based services to the UK market in 2021 and has garnered a client base of over 1.6 million users.
Earlier in March, NatWest Bank, based in the UK, implemented a daily payment limit of £1,000 (US$1,214) for its customers when conducting transactions with cryptocurrency exchanges as a precaution against crypto-related theft. NatWest noted in its March press release that its UK customers incurred losses of £329 million (US$400 million) due to cryptocurrency scams in the previous year.
The United Kingdom has been actively working to foster growth within its blockchain and cryptocurrency sector, with Prime Minister Rishi Sunak openly advocating for the industry. In June, the UK passed the Financial Services and Markets Act 2023, a reform bill granting financial authorities the authority to regulate cryptocurrency as a financial instrument. While this move aimed to provide more regulatory clarity, it raised concerns among some cryptocurrency proponents in the UK, primarily due to the constraints placed on marketing campaigns.
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