JP Morgan’s Retail Bank Chase to Stop UK Customers from Making Crypto Transactions
JPMorgan’s UK-based retail bank, Chase, will prohibit its customers from conducting cryptocurrency transactions starting October 16.
The bank stated that due to the increasing number of crypto scams targeting UK customers, they have opted to block the purchase of cryptocurrencies using Chase debit cards and prevent transfers to crypto platforms from Chase accounts.
Chase’s move reflects a broader trend among UK lenders seeking to mitigate the risks associated with cryptocurrency scams. Since its launch in the UK two years ago, JPMorgan’s app-based Chase retail bank has garnered over 1.6 million customers and intends to expand to other global markets.
Coinbase CEO, Brian Armstrong, tweeted his disapproval of this move by Chase Bank. Even going as far as tagging the Prime Minister of the UK, Rishi Sunak.
Restrictions in the UK Before this Blanket Ban
Earlier this year, NatWest imposed restrictions on transfers to crypto exchanges by limiting the max daily transfer amount to £1000 ($1,899) and the monthly limit to £5000 ($9,499).
Last year, Santander blocked UK customers from making real-time payments to crypto exchanges, citing customer protection from potential scams.
Australian Banks Have Imposed Similar Restrictions
Closer to home, The Commonwealth Bank of Australia (CBA) has implemented comprehensive changes in an effort to minimise Australian customers’ exposure to cryptocurrencies.
Similar to Chase bank, CBA has implemented a transfer limit to crypto exchanges in order to protect customers from an increasing number of crypto-related scams.
NAB joined CommBank in banning some payments to what it calls high risk exchanges.
Conflicting Tone From Banks and Corporate Players Globally
This news drops at an interesting time, blurring the line of sentiment towards crypto from traditional finance, especially given we have seen more adoption stories from the last few weeks across the globe.
Most recently, ANZ Bank, a top four bank in Australia, announced its partnership with Chainlink, specifically in early plans to test and research their own stablecoin, A$DC.
Also, HSBC Bank and Mastercard have submitted multiple trademark applications related specifically to Crypto and Blockchain with the United States Patent and Trademark Office.
While these two are the most recent, there have been multiple submissions also made by such players in the industry as Visa, PayPal and Western Union.