JPMorgan’s Chase UK bank will ban cryptocurrency payments from October 16. The bank cites the increasing wave of fraud targeting consumers in the UK as the reason for this. The company will prevent British customers from transferring money from their Chase accounts to crypto firms. Additionally, Chase will not allow attempts to trade crypto with debit cards.
UK banks distance themselves from cryptocurrencies
The bank informed customers about the issue via e-mail. Accordingly, the bank, which started operating in the UK in September 2021, will reject any transactions in which customers think they are trying to buy crypto assets. He said his customers could use a different bank or provider to buy crypto.
This move by the JPMorgan-owned bank seems oddly timed, given that crypto trading is a regulated financial activity under the UK’s new Financial Services and Markets Act. The Financial Conduct Authority and other regulators have drawn up details which Economy Minister Andrew Griffith said should be finalized soon.
Failed bank incidents drove banks away from crypto!
But this is hardly surprising given the abundance of UK banks that have limited or banned crypto transactions following the collapse of several cryptocurrency-friendly US banks such as Silicon Valley Bank, Silvergate and Signature. These banks faced mass withdrawals that exposed the illiquidity of their assets. cryptokoin.comAs you followed from , they later threw in the towel in March. In May this year, NatWest, a major British consumer bank, placed restrictions on customers’ transfers to crypto exchanges. Customers can only transfer about $1,200 per day and about $6,000 per month.
Recently, the Hong Kong Monetary Authority announced that HSBC and Standard Chartered are staying away from crypto exchanges. He invited banks to this area. But banks are reluctant to serve crypto companies following US allegations of money laundering at Binance.
UK bull market millionaires will experience déjà vu
Chase’s move could result in similar disappointments experienced by UK crypto investors after the 2021 bull market. A French investor who later moved to London earned nearly $4 million from crypto investments. However, he could not convert his crypto profits into sterling because banks stayed away from crypto. A crypto entrepreneur quit his job after making more than $200,000 through crypto. However, banks did not grant access to their services for the entrepreneur’s business.
BankTSB, a British bank, banned five million customers from purchasing cryptocurrencies in June 2021. The bank cited the extreme levels of fraud on crypto platforms as the reason for this. Prior to this move, Barclays, Monzo and Starling took action to temporarily block wire transfers to crypto exchanges.
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