JPMorgan financial arm Chase Bank announced plans to impose restrictions on crypto transactions in the UK. In a blog post, the Chase bank team confirmed that from October 16, UK retail and institutional clients will be restricted from engaging in crypto transactions.
The report demonstrated that the bank would adopt restrictive measures to prevent UK users from using debit cards and bank transfers to buy and sell crypto assets.
Chase Bank UK Restricting Crypto Transactions
An announcement by Chase Bank revealed that for customers attempting to bypass the new restrictions after the set deadlines, the bank will decline their crypto transactions. Upon reaching the Chase spokesperson for further questioning, the representative stated that the increase in fraudulent activities and scams in the crypto sector challenged the bank to take proactive measures to safeguard the consumer interest.
Firstly, the bank agreed to impose restrictive measures in all crypto-related transactions to address financial crime. Citing a study from the British fraud reporting agency on “Action Fraud,” the spokesperson noted that crypto losses have drastically increased.
Rise of Crypto Crimes in UK
The study demonstrated that crypto fraud increased by 40% as of May 2023. In the research findings, the agency noted that crypto losses in the UK translate to over $365 million, which equates to 300 million British pounds.
The agency concluded that crypto crimes have exposed customers to loss of substantial amounts. In response to the early warning from the agency, Chase Bank agreed to prioritize protecting the consumer interest by implementing measures that will safeguard their hard-earned money.
The Chase representative underscored that the institution will remain committed to attaining its primary objective of keeping its customers’ funds safe and secure. Guided by the bank core principles, Chase has been offering financial and banking services for decades.
Since 1877, the bank has broadened its geographical presence by establishing around 4600 branches serving over 50 million customers. The attempt to remain in the vibrant financial market has challenged the bank to uphold compliance and safeguard the customers’ interests.
Measures to Adress Financial Crime
The spokesperson admitted that the bad players in the financial sector have been preying on the UK customers. In particular, the spokesperson lamented that most reported cases involved crypto scams. To help mitigate the crime rate, the spokesperson reiterated that the bank agreed to restrict the use of Chase debit cards and other depository services in buying and selling crypto assets.
Subsequently, Chase Bank emailed its key stakeholders outlining the policy changes. In the September 26 email, Chase stated that the bank has agreed to change its policies due to the increase in fraudulent activities in the crypto industry that have exposed customers to financial losses.
The bank also updated the X community on the changes in policies. News concerning the changes sparked heated arguments among the investors.
In an X post, one user stated that the restriction on crypto transactions limits the investor’s freedom to explore the financial sector. Even though Chase aimed at protecting the investor from exploitative business activity, the user claimed that the restrictions undermine the use of crypto.
In a subsequent X post from a Bitcoin maximalist, the investors blamed Chase Bank for banning crypto. He expressed concerns on whether the bank new policy aimed at retracing back to the paper and pen banking practices. The user believed there was a solid solution to combat fraudsters rather than restricting crypto transfers.
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