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Chase Bank, a division of financial services firm JPMorgan Chase, will impose limitations on all cryptocurrency-related transactions for its clients in the United Kingdom.
Beginning on Oct. 16, Chase Bank customers in the U.K. will be unable to conduct crypto transactions using their debit cards or via outgoing bank transfers, a representative informed Cointelegraph on Sept. 26.
“Customers will receive a notification of a declined transaction if they attempt to engage in a crypto-related transaction,” the bank stated in a release.
As per the bank’s spokesperson, Chase has opted to implement the new restrictions due to a “rise in fraud and scams” associated with crypto assets. The representative referenced information from the U.K.’s fraud reporting agency, Action Fraud, which indicated that consumer losses from crypto fraud in the U.K. increased by over 40% year-on-year as of May 2023. The agency reported that losses in the U.K. exceeded 300 million British pounds ($365 million).
“This measure has been taken to safeguard our customers and ensure their funds are secure,” the Chase spokesperson remarked, adding:
“We’re dedicated to helping keep our customers’ funds safe and secure. We’ve observed a rise in the number of crypto scams targeting U.K. consumers, prompting us to prevent the purchase of crypto assets using a Chase debit card or by transferring funds to a crypto platform from a Chase account.”
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Chase Bank initially communicated its policy changes regarding crypto in an email to customers on Sept. 26. “We’ve made this choice because fraudsters are increasingly utilizing crypto assets to steal significant sums of money from individuals,” the bank stated.
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Some Chase users on X (formerly Twitter) later reported receiving the email concerning the policy changes on X. Many voiced their discontent, claiming it restricts the ability to use crypto under the pretext of protecting investors.
“We are banning computers because fraudsters use them,” one Bitcoin (BTC) supporter commented, adding: “Back to pen and paper!”
Chase Bank just banned crypto pic.twitter.com/prbWNKrG0G
— Interstellar (@InterstellarBit) September 26, 2023
Chase Bank is a retail-oriented institution providing fee-free banking through its mobile application. With over 4,600 branches globally, Chase reportedly has more than 50 million active users. The new restrictions will affect only about 2% of its total user base worldwide, with its U.K. clientele reaching 1 million in September 2022.
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Update (Sept. 26, 2:42 pm UTC): A prior version of this article inaccurately described Chase Bank as a digital bank.
