JPMorgan’s Chase UK Bank to Prohibit Crypto Payments, Following Other UK Banks
JPMorgan’s Chase UK bank has announced that it will ban crypto payments from October 16, 2023. The decision comes as a response to the increasing number of scams targeting UK consumers. The bank will prevent customers from transferring money from Chase accounts to crypto firms and block attempts to trade crypto using Chase debit cards. Customers are advised to use alternative banks or providers for their crypto transactions.
UK Banks Distance Themselves Despite Crypto’s Legal Status
This move by JPMorgan-owned Chase seems unexpected, considering that crypto trading is a regulated financial activity in the UK. However, other UK banks have already implemented restrictions on crypto transactions following the failures of several US banks that were previously crypto-friendly. These failures revealed the illiquidity of their assets, leading to mass withdrawals.
In May 2023, NatWest limited the amount customers could transfer to crypto exchanges. More recently, HSBC and Standard Chartered faced scrutiny for avoiding crypto exchanges due to concerns over money laundering allegations at Binance.
UK Bull Market Millionaires Will Experience Déjà Vu
This decision by Chase may cause frustration for UK crypto traders, similar to what they experienced after the 2021 bull market. Some investors and entrepreneurs have struggled to convert their crypto profits into traditional currency due to banks’ reluctance to engage with cryptocurrencies. Banks like TSB, Barclays, Monzo, and Starling have implemented temporary bans or restrictions on wire transfers to crypto exchanges.
Hot Take: Chase Bank Bans Crypto Transactions for UK Traders
JPMorgan’s Chase UK bank’s decision to prohibit crypto payments reflects a growing trend among UK banks distancing themselves from cryptocurrencies. While this move may aim to protect customers from scams, it also restricts their access to the crypto market. As crypto continues to gain mainstream adoption, banks will need to find a balance between safeguarding their customers and embracing emerging financial technologies. The crypto community should advocate for clearer regulations and collaboration between banks and crypto platforms to ensure a more inclusive and secure financial ecosystem.
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