Banking behemoth JPMorgan has acknowledged that its retail affiliate Chase is prohibiting cryptocurrency transactions for its British customers.
Beginning on October 16, British clients won’t be able to purchase digital assets using a Chase debit card or by moving funds from a Chase account to a cryptocurrency website.
In a statement, Chase said that this was “done to protect our customers and keep their money safe.”
In a statement to customers, the bank explained that the decision was made due to “an increase in the number of cryptocurrency scams targeting U.K. customers.”
“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,” it further added.
A spokesman stated that “crypto scams are part of a wider ‘epidemic’ of fraud, which accounted for more than 40% of all reported crimes in England and Wales last year.”
The bank struggled to decide how to deal with consumers purchasing cryptocurrency. 2020 saw a lawsuit against Chase U.S. that claimed the company overcharged clients who used their credit cards to purchase cryptocurrencies in 2018. The case ultimately reached an out-of-court settlement for $2.5 million.
Chase Bank contended at the time that bitcoin purchases qualified as “cash-like transactions” under its terms of service and were thus subject to cash advance fees. However, a judge determined that plaintiffs had properly demonstrated that “cash-like” transactions only applied to transactions involving fiat money.
However, neither the bank nor its parent firm, JPMorgan, have completely ruled out cryptocurrency as a business. JPMorgan made a new appointment for the position of head of cryptocurrency policy last autumn and registered a trademark for a cryptocurrency wallet.
Other banks have pushed back on cryptocurrency purchases made by consumers in the UK.
Banking behemoths Nationwide and HSBC imposed daily limitations on purchasers and prohibited the use of credit cards to acquire cryptocurrency.
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