Chase, a digital bank owned by JPMorgan, is set to ban crypto-linked payments through debit cards or outgoing bank transfers for its UK clients starting on October 16, as conveyed in an email sent to customers.
The email noted: “If we think you’re making a payment related to crypto assets, we’ll decline it.”
Chase Bank emphasized that customers attempting to make crypto-related transactions would receive declined transaction notifications. Customers were encouraged to use other banks or providers for their crypto investments.
Chase cited an increase in fraud and scams related to crypto assets as the reason for implementing these new cryptocurrency restrictions. This rationale aligns with similar limitations imposed by other UK banks in the past.
A spokesperson for Chase U.K. said in an email:
“We’re committed to helping keep our customers’ money safe and secure. We’ve seen an increase in the number of crypto scams targeting UK consumers, so we have taken the decision to prevent the purchase of crypto assets on a Chase debit card or by transferring money to a crypto site from a Chase account,”
It’s worth noting that finding a crypto-friendly bank in the UK can be challenging, as many UK credit institutions have previously limited or blocked customer access to cryptocurrencies.
The Financial Conduct Authority (FCA), the UK’s financial watchdog, has even facilitated discussions between banks and crypto firms due to banks’ reluctance to provide services to the crypto industry.
Also, several other banks in the UK have recently imposed restrictions on cryptocurrencies. Nationwide, for example, announced earlier this year that it would prohibit payments to crypto exchanges using its credit cards and set a daily spending limit of £5,000 for current accounts on crypto transactions.
Similarly, in February, HSBC introduced restrictions on the purchase of cryptocurrencies, barring customers from using HSBC credit cards for such transactions. Regulatory bodies have also taken steps against cryptocurrencies, with the FCA laying out a stringent new framework for crypto advertisements.
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