Chase bank is set to ban crypto-linked payments via debit card or bank transfer starting next month. The move comes following certain regulations in the United Kingdom.
Chase bank is a subsidiary of the blockchain-friendly financial giant J.P. Morgan. Launched in 2021, the UK bank serves more than 1.6 million customers across the country.
In an email sent to its customers, the bank stated:
“From 16 October 2023, if we think you’re making a payment related to crypto assets, we’ll decline it. If you’d still like to invest in crypto assets, you can try using a different bank or provider instead — but please be cautious, as you may not be able to get the money back if the payment ends up being related to a fraud or scam”.
Chase said it made the decision after noticing the prevalent rate at which fraudsters target crypto assets in the UK. As such, declining these payments is one of the bank’s methods in curbing such scams as well as protecting users and their money.
Uk Crypto Restrictions
Data from the UK’s fraud reporting agency shows that the crypto fraud in the country increased by more than 40% over the past year, surpassing £300 million ($365 million) for the first time.
In an attempt to prevent these crimes, various banks in the country such as Santander, Barclays, Nationwide have blocked certain crypto transactions. In March, NatWest imposed limits on customer’s daily and monthly transactions, citing volatility and scam concerns.
The UK has been seeing tighter regulations recently which might have influenced the bank’s decisions. The local watchdog – the Financial Conduct Authority (FCA) earlier said it facilitated talks between banks and crypto companies because lenders have shown a reluctance to offer services to the industry.
The FCA has also introduced certain regulatory measures requiring crypto firms to follow specific guidelines before promoting their products within the region. According to the regulator, these rules would protect consumers from investing in crypto assets that do not match their risk appetite. However, the current state of things have people questioning if the UK is pushing for regulations instead of innovation.
The restrictions are not only limited to the UK as other banks in various parts of the world are also limiting their customer’s access to crypto. The Commonwealth Bank of Australia, ANZ, and Westpac have imposed restrictions on transactions to cryptocurrency exchanges due to the prevalence of frauds in the sector.
