Chase , the UK-based digital banking subsidiary of JPMorgan Chase, informed customers Tuesday in an email that it will prohibit UK customers from making payments related to regarding cryptocurrency or outgoing bank transfers starting October 16 due to cryptocurrency scams.
A Chase spokesperson said:
“We have seen an increase in crypto scams targeting UK consumers, so we have taken the decision to prevent purchases of Cryptoasset using debit cards Chase or by transferring funds to a cryptocurrency website from a Chase account.”
Chase, which launched its app-based service in the UK in 2021, has attracted more than 1.6 million customers.
JP Morgan Chase, its parent company, is the largest bank in the US, with total assets worth more than $3 trillion.
In early March, UK-based NatWest Bank limited customer payments to cryptocurrency exchanges to £1,000 ($1,214) per day as a safeguard against cryptocurrency theft.
NatWest noted in a March press release that UK consumers lost £329 million ($400 million) to cryptocurrency scams last year.
The UK has been working to develop the blockchain and cryptocurrency sector, with Chancellor Rishi Sunak a strong supporter of the industry.
In June, the UK passed the Financial Services and Markets Act 2023, a reform bill that will allow the country's financial authorities to treat cryptocurrencies as a regulated financial instrument.
Despite bringing greater clarity, the new cryptocurrency regulations have raised concerns among some UK crypto advocates due to the limits placed on marketing campaigns .
General Bitcoin News.