JP Morgan’s Chase Discontinues Crypto Payments for UK Users
- Chase notified users in an email that, from October 16, UK users will be unable to make crypto transactions.
- The UK has introduced new rules aimed at safeguarding the use of cryptocurrency and preventing financial crimes like fraud.
- Chase joins other financial institutions like HSBC Holdings Plc and Nationwide Building Society to tighten restrictions on retail customers’ exposure to cryptoassets.
JP Morgan’s subsidiary Chase Bank has announced plans to block all crypto-related transactions for its UK customers due to an increase in fraud and scams. Chase noted that its UK customers will not be allowed to conduct cryptocurrency payments with their debit cards or through outbound bank transfers starting on October 16.
A spokesperson for the company said in a statement:
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.
Chase’s presence has grown in the UK since it launched in September 2021. It attracted 1 million customers in its first year of business. However, Chase now follows in the footsteps of financial institutions like HSBC Holdings Plc and Nationwide Building Society to tighten restrictions on retail customers’ exposure to cryptoassets due to the risks they pose.
According to data from Britain’s Action Fraud, customer losses caused by cryptocurrency fraud increased by more than 40% year-over-year as of May 2023. The organization estimates that the losses in the UK have exceeded $300 million ($365 million).
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
