Chase, the UK-based digital bank under JPMorgan Chase, has informed customers that it will prohibit cryptocurrency-related payments starting October 16 due to a rise in crypto scams targeting UK consumers.
In an email to clients on Tuesday, Chase said it will ban UK customers from making payments to crypto exchanges or conducting outgoing bank transfers linked to cryptocurrencies using Chase debit cards or accounts. A spokesperson for Chase confirmed the policy change to Reuters, stating “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.”
Launched in 2021, Chase quickly amassed over 1.6 million UK clients with its app-based banking services. Its parent company, JPMorgan Chase, is the largest bank in the US with total assets exceeding $3 trillion.
The crypto payment ban comes after similar moves by other major UK banks aiming to protect consumers from fraud. In March, NatWest restricted customer payments to crypto exchanges to £1,000 per day following £400 million in crypto-related scams affecting its UK customers last year.
The policy shifts contrast with the UK government’s broader support for growing the country’s blockchain and crypto industry. Prime Minister Rishi Sunak has been a vocal advocate of the sector. In June, the UK passed the Financial Services and Markets Act 2023, bringing more regulatory clarity to cryptocurrencies by enabling authorities to treat them as financial instruments. However, the new regulations also impose marketing limits, concerning some crypto proponents.
While bolstering consumer protections, the latest measures by Chase and other leading UK banks risk hampering mainstream cryptocurrency adoption. With crypto scams on the rise globally, financial institutions must strike a balance between security and innovation.
