Banking in the cryptocurrency world in the UK just got a little trickier, as Chase, a digital bank owned by JPMorgan, is set to clamp down on crypto-linked payments through debit cards or outgoing bank transfers for its UK clients. This new policy, effective from October 16, aims to decline transactions related to crypto assets.
Announced through an email to customers, Chase accentuated customers who attempt to make crypto-related transactions would be met with declined transaction notifications and were intermittently nudged to employ other banks or providers for their crypto investments. Chase mentioned augmented instances of fraud and scams related to crypto assets to be the driving force behind this new move. This bearish stance toward cryptocurrency aligns with the previous regulations imposed by other UK banks.
“We’re committed to helping keep our customers’ money safe and secure. We’ve 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,” a spokesperson for Chase expressed via email.
Navigating the crypto world can be daunting given the ever-increasing restrictions, particularly in the UK where several established banks are already bearish on digital currencies. The Financial Conduct Authority (FCA), the UK’s financial watchdog, even instigated discussions between banks and crypto firms as banks are hesitant to provide services to the crypto industry.
Several other UK banks have recently narrowed the scope of operations when it comes to cryptocurrencies. Nationwide, earlier this year stated it would ban payments to crypto exchanges using its credit cards with a daily spending limit of £5,000 imposed on current accounts for crypto transactions. HSBC also hopped on the bandwagon in February, barring any purchase of cryptocurrencies via its credit cards. The FCA, on the other hand, launched a new framework for crypto advertisements enforcing more stringent protocols.
The sight of banks distancing themselves from cryptocurrencies, although discouraging for crypto enthusiasts, stems from the increasing need for consumer protection against potential frauds and scams, the perpetual gray area hovering around regulations, and the inherent volatility attributed to digital assets. This tumultuous relationship between banks and cryptocurrencies seemingly underlines the pressing need for robust regulations. It will be interesting to see how this symbiotic association between cryptocurrencies and banks plays out in the future as the crypto-world continues to evolve.
Source: Cryptonews
