Chase, the U.K.-based digital bank subsidiary under JPMorgan Chase, told customers Tuesday in an email that it will ban U.K. clients from making crypto-related payments or outgoing bank transfers starting Oct. 16 due to crypto scams, according to Reuters.
See related article: U.K. bill to regulate crypto assets passes into law, offering ‘rocket boost’ for economy
Fast facts
- “We’ve seen an increase in the number of crypto scams targeting U.K. 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,” a spokesperson for Chase told Reuters.
- Chase, which launched its app-based service in the U.K. in 2021, amassed over 1.6 million clients. JP Morgan Chase, its parent company, is the largest bank in the U.S., with total assets worth over US$3 trillion.
- Earlier in March, U.K.-based NatWest Bank limited its customers’ payments to crypto exchanges to 1,000 British pounds (US$1,214) per day as a safeguard against crypto theft. NatWest noted in its March press release that its U.K. consumers lost 329 million pounds (US$400 million) to crypto scams last year.
- The U.K. has been making efforts to grow its blockchain and crypto sector, with Prime Minister Rishi Sunak a vocal supporter of the industry.
- In June, the U.K. passed the Financial Services and Markets Act 2023, a reform bill that enabled its financial authorities to treat crypto as a regulated financial instrument. While bringing more clarity, the new crypto regulations raised concerns among some crypto advocates in the U.K. due to the limits placed on marketing campaigns.
- Chase Bank has not yet replied to Forkast’s email request for further comments sent Wednesday morning in Asia.
See related article: By royal decree — the UK moves toward regulating crypto