Digital banking giant Chase U.K. said it will “decline” crypto-related payments made by its users starting October 16.
In emails sent to customers and obtained by CryptoSlate, the bank stated that its decision would help its users keep their “money safe from frauds and scams” as fraudsters increasingly relied on cryptocurrencies to steal from people.
The bank added:
“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 U.K. has yet to respond to CryptoSlate’s request for comment as of press time.
It should be noted that Chase U.K. is a subsidiary of the blockchain-friendly financial giant J.P. Morgan. J.P. Morgan started offering clients access to its blockchain-powered payment platform for European transactions in June. Additionally, there are indications that the bank is exploring the development of a unique blockchain-based digital deposit token, distinct from its existing JPM Coin.
Meanwhile, Chase’s decision follows a similar trend taken by several high-profile U.K. banks, including HSBC, Nationwide, and Banco Santander, following the FTX’s collapse last year. The banks cited the Financial Conduct Authority’s (FCA) warnings about crypto as high-risk investment assets for their decisions.
The FCA recently introduced stringent regulatory measures requiring crypto companies to follow specific guidelines before promoting their products within the region. According to the regulator, these rules would protect consumers from investing in crypto assets that do not match their risk appetite.
Outside of the U.K., several traditional banks are also limiting their customers’ access to crypto. In Australia, the Commonwealth Bank of Australia, ANZ, and Westpac have imposed restrictions on transactions to cryptocurrency exchanges due to the prevalence of scams in the sector.
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