JPMorgan's UK-based subsidiary, Chase UK, has announced its intention to ban customers in the UK from using crypto payments via bank transfer or their debit cards starting October 16.
Recently, Chase customers were notified of the policy change via email emphasizing that the move is aimed at protecting user funds from the risk of fraud and crime, especially with the increasing use of cryptocurrencies by criminals to commit theft.
“If you still want to invest in crypto assets, you can try using a bank or other provider – but please be careful, as you may not be able to get your money back if the payment ends up being related to fraud or a scam.”
Additionally, Chase Bank pointed to research results from Action Fraud, the UK's fraud reporting agency, which revealed that losses connected to fraud had increased by 40%, reaching more than 300 million British pounds sterling.
“Crypto fraud is part of a wider fraud ‘epidemic’, which accounted for more than 40% of all reported crimes in England and Wales last year,” a Chase UK spokesperson said.
This decision was taken in response to increasing cases of fraud and deceptive practices related to cryptocurrencies in the UK, such as detrimental investments and fake celebrity appearances.
Chase is one of a number of banks and credit card providers in the UK who have joined in banning their customers from engaging in transactions with crypto entities. This includes actions taken by Starling and Santander, while several other banks are limiting the amount of crypto purchases their customers can make.