JP Morgan Chase Bans Crypto Purchases for UK Customers
Dear Investors,
Chase UK, the British digital banking division of JP Morgan, has announced that it will prohibit customers from engaging in cryptocurrency transactions starting next month. This decision is attributed to a growing concern over the rise in cryptocurrency-related scams and fraud.
Effective from October 16th, Chase customers will no longer have the option to conduct cryptocurrency transactions via their debit cards or through outgoing bank transfers, as stated by the bank on Tuesday.
Chase said in an email to customers:
“If we think you’re making a payment related to crypto assets, we’ll decline it. If you’d still like to invest in crypto assets, you can try using a different bank or provider instead — but please be cautious, as you may not be able to get the money back if the payment ends up being related to fraud or a scam.”
Chase stated that its decision on Tuesday was driven by a commitment to safeguarding customers and their finances. Additionally, the bank cited recent reports of escalating losses due to cryptocurrency-related fraud as highlighted by UK regulators over the past year.
According to London-based law firm RPC, data from the UK's fraud reporting agency Action Fraud revealed that crypto fraud in the UK surged by 41% last year, hitting a record high of £306 million ($372.3 million). RPC shared these findings in May and attributed the sharp increase in fraud reports to the November collapse of the cryptocurrency exchange FTC. While the numbers have started to ease in the early months of 2023, RPC pointed out that crypto fraud is likely to remain elevated in the foreseeable future. They explained that even though investors are becoming more adept at identifying scams, fraudsters are adapting and becoming more sophisticated, especially those utilizing artificial intelligence. Additionally, when cryptocurrency values start to rise again, increased market activity often leads to more fraud.
JPMorgan Chase introduced its UK-based digital bank under the Chase brand in September 2021. As of May of this year, Chase had amassed over 1.6 million customers in the UK.
The crypto industry had a field day with the announcement, with Coinbase CEO Brian Armstrong leading the charge.
The announcement strengthened the case for the crypto industry aiming to allow the freedom to allocate your own capital as you wish. The movement to separate money and state is gaining momentum once again.
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Tatiana Koffman
About the Author: Tatiana Koffman
Hi there and thanks for reading! If you stumble upon my newsletter, you will notice that I write about money, economics, and technology. I hold a JD/MBA and spent my career in Capital Markets working across Mergers & Acquisitions, Derivatives, Venture Capital, and Cryptocurrencies. I write to make financial topics more accessible and create equal opportunity for the next generation of investors. I have personally invested in 20+ companies and funds (👉 my portfolio).