Another
major retail bank in the United Kingdom has blocked cryptocurrency
transactions. Following Santander and NatWest, it is now JPMorgan’s British
retail arm, Chase UK. Although the decision was officially made due to the
increasing number of cryptocurrency-related crimes, it fits into a broader
pattern where traditional institutions worldwide are increasingly making
it difficult for cryptocurrency companies and investors to operate with digital
assets.
Chase UK
announced yesterday (Tuesday) that it will ban all cryptocurrency transactions
for its customers starting 16 October. According to the official statement, the
decision is in response to a growing number of scams targeting UK consumers.
“We’ve
seen an increase in the number of crypto scams targeting UK consumers, so we
have decided to prevent the purchase of crypto assets on a Chase
debit card or by transferring money to a crypto site from a Chase account,”
the Chase spokesperson commented.
The bank
has already emailed its customers about the upcoming policy change. “If we
think you’re making a payment related to crypto assets, we’ll decline it,”
the email stated.
While Chase
UK stated in the same email that its customers can use other financial services
to carry out cryptocurrency transactions, it is not as simple as it sounds. In
the United Kingdom, fewer and fewer banks are willing to process transactions
related to digital assets.
Chase UK
has garnered over 1.6 million customers since launching its mobile app-based
service in Britain two years ago. The bank also has plans to expand its
consumer banking services to other international markets in the future.
Crypto Frauds Surpassed £300
Million
Chase UK
referenced statistics from Action Fraud, the UK’s agency for reporting fraud,
revealing that consumer losses to cryptocurrency fraud in the country surged over 40% in the past year, exceeding £300 million for the first time.
In the email
to customers, Chase UK mentioned that crypto-related scams made up more
than 40% of all crimes reported in England and Wales last year, according to
the Office for National Statistics.
A year ago,
the Financial Conduct Authority (FCA ) informed that it had opened 432
regulatory cases concerning potential cryptocurrency scams or unlicensed
operations. The report compiled data from April 2021 to March 2022.
The bank is
the most recent financial institution in the UK to implement measures
restricting customer access to cryptocurrency purchases. Previously, NatWest
set limitations that allowed customers to transfer only up to £1,000 per day
and £5,000 over a month to cryptocurrency exchanges, aiming to curb the
increasing number of crypto-related fraud attempts.
HSBC and
Nationwide have put comparable limitations on transactions involving digital
assets in place.
Another
major retail bank in the United Kingdom has blocked cryptocurrency
transactions. Following Santander and NatWest, it is now JPMorgan’s British
retail arm, Chase UK. Although the decision was officially made due to the
increasing number of cryptocurrency-related crimes, it fits into a broader
pattern where traditional institutions worldwide are increasingly making
it difficult for cryptocurrency companies and investors to operate with digital
assets.
Chase UK
announced yesterday (Tuesday) that it will ban all cryptocurrency transactions
for its customers starting 16 October. According to the official statement, the
decision is in response to a growing number of scams targeting UK consumers.
“We’ve
seen an increase in the number of crypto scams targeting UK consumers, so we
have decided to prevent the purchase of crypto assets on a Chase
debit card or by transferring money to a crypto site from a Chase account,”
the Chase spokesperson commented.
The bank
has already emailed its customers about the upcoming policy change. “If we
think you’re making a payment related to crypto assets, we’ll decline it,”
the email stated.
While Chase
UK stated in the same email that its customers can use other financial services
to carry out cryptocurrency transactions, it is not as simple as it sounds. In
the United Kingdom, fewer and fewer banks are willing to process transactions
related to digital assets.
Chase UK
has garnered over 1.6 million customers since launching its mobile app-based
service in Britain two years ago. The bank also has plans to expand its
consumer banking services to other international markets in the future.
Crypto Frauds Surpassed £300
Million
Chase UK
referenced statistics from Action Fraud, the UK’s agency for reporting fraud,
revealing that consumer losses to cryptocurrency fraud in the country surged over 40% in the past year, exceeding £300 million for the first time.
In the email
to customers, Chase UK mentioned that crypto-related scams made up more
than 40% of all crimes reported in England and Wales last year, according to
the Office for National Statistics.
A year ago,
the Financial Conduct Authority (FCA ) informed that it had opened 432
regulatory cases concerning potential cryptocurrency scams or unlicensed
operations. The report compiled data from April 2021 to March 2022.
The bank is
the most recent financial institution in the UK to implement measures
restricting customer access to cryptocurrency purchases. Previously, NatWest
set limitations that allowed customers to transfer only up to £1,000 per day
and £5,000 over a month to cryptocurrency exchanges, aiming to curb the
increasing number of crypto-related fraud attempts.
HSBC and
Nationwide have put comparable limitations on transactions involving digital
assets in place.
