As we begin the last quarter of 2023, we’re once again reminded why crypto was created: financial institutions wield way too much power. Starting October 16, Chase UK will ban crypto payments for all of its customers. Putting it bluntly, the bank told customers by email: "If we think you're making a payment related to crypto assets, we'll decline it." Once implemented, Chase's new policy means customers who try to make a crypto payment using their debit card or via a bank transfer will find the transaction is declined. "We've made this decision because fraudsters are increasingly using crypto assets to steal large sums of money from people." Chase argues this move is essential to protecting its customers and their assets with recent data showing a 40% surge in crypto fraud in the UK. This seemingly aligns with the stance of JPMorgan's CEO, Jamie Dimon who has been particularly vocal about cryptocurrencies in recent years. However, this decision is the wrong one. Not only is it condescending and anti-consumer (dictating what customers can and can’t spend their own money on) but it is also antithetical to the UK's crypto agenda. 𝙂𝙧𝙤𝙬𝙞𝙣𝙜 𝙖𝙣𝙩𝙞-𝙘𝙧𝙮𝙥𝙩𝙤 𝙩𝙧𝙚𝙣𝙙 Chase UK’s advice to customers who still want to make crypto payments is to “try using a different bank or provider instead.” Easier said than done. Many mainstream banks in the UK are now actively blocking or severely limiting customers from accessing crypto. NatWest, with 19 million customers, has implemented daily and monthly limits for customers. HSBC, with 39 million customers, has also imposed a £2,500 transaction limit, as well Santander and Nationwide. Other measures include only facilitating transactions with exchanges approved by the FCA (Financial Conduct Authority). Earlier this year, Binance-related transactions were impossible for many in the UK before a backpedal by banks. These measures by UK banks are in direct contrast to those of Europe. EU banks, such as the Swiss Sygnum, already offer digital asset banking for its customers, as well as the state-operated Luzerner Kantonalbank promising crypto offerings soon. Germany’s Deutsche Bank has also recently announced it will establish digital asset custody services for “selected cryptocurrencies and some stablecoins,” after they see “the market has evolved.” 𝘾𝙤𝙣𝙩𝙧𝙖𝙙𝙞𝙘𝙩𝙤𝙧𝙮 𝙨𝙩𝙖𝙣𝙘𝙚 Importantly, this growing trend within the UK banking sector is not mandated by regulators. These decisions are being made by the banks voluntarily. Why? The fact is that crypto fraud is costing banks serious money. Despite being an openly unregulated industry, The Financial Ombudsman Service has regularly forced banks to refund transactions related to crypto fraud that they believe should have been intervened. Cryptocurrency fraud solicitors are now becoming more commonplace in the UK as more and more unsuspecting people fall victim to scams. The latest figures show around £300 million has been lost to such scams after people unfamiliar with the “wild-west” of crypto have been targeted via SMS messages, social media, and even direct phone calls. But it's wrong headed to ban crypto transactions completely. This special measure against crypto appears arbitrary when compared to losses incurred by customers of other industries. For example, according to government data, UK customers have lost around £14.1 billion to gambling companies in 2021-2022 alone. Banks are not obligated to refund these losses, however, so only legally obligated restrictions are implemented. Similarly, it’s unlikely Chase would step in and stop you from investing your life savings in a volatile stock. The blockade against crypto is, therefore, more than simply protecting customers, it’s about protecting banks' own interests. Crypto represents an existential threat to traditional institutions like high-street banks. As crypto has proven increasingly difficult to regulate, denying an on-and-off ramp for fiat proves an excuse to restrict access under the guise of "customer protection." 𝙒𝙝𝙖𝙩 𝙝𝙖𝙥𝙥𝙚𝙣𝙚𝙙 𝙩𝙤 𝙩𝙝𝙚 𝙐𝙆’𝙨 𝙘𝙧𝙮𝙥𝙩𝙤 𝙖𝙢𝙗𝙞𝙩𝙞𝙤𝙣𝙨? Not only are the restrictions and bans by UK banks anti-consumer, they stand in stark contrast to the promises made by the former Chancellor (now Prime Minister) Rishi Sunak. Speaking in April 2022, Sunak argued “It’s my ambition to make the UK a global hub for cryptoasset technology.” Lately, these ambitions have been little spoken of. Chase UK’s ban and the limits imposed by other banks indicate the UK is not interested in fostering growth and adoption of digital currencies or crypto tech. Ultimately, it will be impossible for the UK to reach its goals if the public itself is barred from accessing crypto. Implementing control measures under the flag of “safety” is an old trick and one that people should be wary of.