JP Morgan Chase Bank To Ban Crypto Payments From Next Month

Due to burgeoning concerns of financial crime, and increased activity of fraudsters and scammers, JP Morgan's Chase UK bank has made the decision to ban their customers from making future cryptocurrency payments.

The company states that the ban, which will come into effect from October 16th, will apply to all debit card and outgoing bank transfers.

A spokesperson for Chase UK stated that the bank was "committed to helping keep our customers' money safe and secure".

"We have 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," they added.

The retail banking arm of JP Morgan announced this ban to customers via email, whilst also warning them that "fraudsters are increasingly using crypto assets to steal large sums of money from people".

Although the email stated that customers could still make crypto payments through the services of alternative banks, this came with a warning that they may not be able to get their money back.

"If we think you're making a payment related to crypto assets, we'll decline it," the email stated, unarguably making the bank's stance crystal clear.

According to the Office for National Statistics, crypto-related scams made up more than 40 per cent of all crimes reported in England and Wales last year, with these scams in particular surpassing £300 million.

The Financial Conduct Authority said that last year, it had opened up over 400 regulatory cases concerning potential cryptocurrency scams and unlicensed operations.

Interestingly, although the email from JP Morgan's Chase to their customers states that they can use other financial services to carry out their cryptocurrency transactions, this may potentially prove quite difficult.

Fewer and fewer banks across the United Kingdom are showing a distinctive unwillingness to process transactions related to digital assets.

To put this into perspective, several UK banks, including Santander and Natwest, have already placed limits on crypto-related transactions, but this is the first time a bank has outright banned customers from using the asset.

For example, Natwest set firm limitations that allowed customers to transfer only up to £1,000 per day and £5,000 over a month to cryptocurrency exchanges, ultimately hoping to curb the rising number of fraudulent incidents regarding digital assets.

And it doesn't stop there — Nationwide and HSBC have also implemented considerable limitations on transactions that involve digital assets.

In February, HSBC in particular introduced restrictions on the purchase of cryptocurrencies, with all customers prevented from purchasing them on an HSBC credit card.

However, in the context of JP Morgan's Chase, although the decision was officially made due to rising numbers of cryptocurrency-related crimes, this ultimately fits into a broader pattern where many institutions are increasingly making it difficult for cryptocurrency investors to operate.

Chase UK has garnered over 1.6 million customers since launching its mobile app-based service in Britain nearly two years ago.

Additionally, the bank also has ambitious future plans which involve expanding its consumer banking services to international markets.