JP Morgan’s British retail bank, Chase, is set to implement a sweeping ban on all cryptocurrency transactions by its customers, starting from October 16. This decisive move comes as a response to a surge in cryptocurrency-related fraud and scams.
A spokesperson for the bank confirmed the decision on Tuesday, emphasizing the institution’s commitment to safeguarding its customers’ financial interests. They stated, “We are committed to helping keep our customers’ money safe and secure.”
JP Morgan’s decision to prohibit the purchase of cryptocurrency assets using Chase debit cards or transferring funds to crypto platforms from Chase accounts is notable, as it represents one of the first outright bans on cryptocurrencies by a major UK bank.
This move aligns with a broader trend among UK financial institutions. Several other banks in the United Kingdom have already imposed various restrictions on cryptocurrency-related transactions. However, JP Morgan’s action takes it a step further by instituting a complete ban.
Recent data from Britain’s fraud reporting agency, Action Fraud, paints a concerning picture. It reveals a staggering 40% increase in consumer losses due to cryptocurrency fraud over the past year, surpassing £300 million for the first time. These figures illustrate the growing threat posed by crypto-related scams in the UK.
JP Morgan’s Chase retail bank, launched as a mobile app-based service in Britain two years ago, has amassed over 1.6 million customers. The bank has ambitions to expand this consumer-focused banking service into international markets in the future.
Earlier this year, NatWest imposed new limits on the daily and monthly amounts customers could send to cryptocurrency exchanges, aiming to shield consumers from the activities of “crypto-criminals.” Similarly, Spain’s Santander took measures in the previous year to block UK customers from making real-time payments to crypto exchanges as part of a broader strategy to protect customers from potential scams.