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Chase bans crypto-linked payments for U.K. clients due to increased crypto scams



Banking giant Chase has announced that it will prohibit U.K. clients from making crypto-linked payments via debit card or outgoing bank transfer, effective October 16. In an email to customers, the bank stated that it would decline any payment attempts related to cryptocurrency assets made through debit card transactions or outgoing bank transfers.

The email explicitly stated, “If we think you’re making a payment related to crypto assets, we’ll decline it”, The bank also informed customers that they are welcome to utilize alternative banks or providers for their cryptocurrency investments.

However, finding a crypto-friendly bank in the country may not be the easiest thing, as U.K. credit institutions have a history of blocking or limiting customer access to crypto. The local financial watchdog – the Financial Conduct Authority (FCA) – recently said it had facilitated discussions between banks and crypto firms because lenders have shown reluctance to offer services to that industry.

Chase said it was banning crypto payments because “fraudsters are increasingly using crypto assets to steal large sums of money from people,” in the email reviewed by CoinDesk – a reason cited by other U.K. banks that have previously imposed similar limitations.

“We’re committed to helping keep our customers’ money safe and secure. We’ve seen an increase in the number of crypto scams targeting U.K. consumers, so we have taken the decision to prevent the purchase of crypto assets on a Chase debit card or by transferring money to a crypto site from a Chase account,” a spokesperson for Chase U.K. said in an email.

It’s noteworthy that while Chase is banning U.K. customers from using their accounts to send funds to crypto exchanges, the bank is not prohibiting customers from holding or trading crypto assets. The decision to ban payments is motivated by the growing problem of crypto scams, which have been on the rise in recent years.

Previously, in the U.K., there were over 5,000 crypto scam victims in 2021, and the country’s Financial Conduct Authority (FCA) has been vocal about the need for more regulation in the crypto space.

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