According to the latest details that surfaced, Chase Bank is prohibiting cryptocurrency-related payments for its UK account holders starting October 16th, per an email to customers. The ban comes as UK banks face pressure to support crypto amidst regulatory hesitation.
JUST IN: 🇬🇧 Chase Bank to ban crypto-related payments for UK customers.
— Watcher.Guru (@WatcherGuru) September 26, 2023
Chase Bank to decline payments related to crypto
According to the notice, Chase will decline any payment deemed crypto-linked, recommending customers use other providers to invest in digital assets. This follows similar actions by major UK banks to restrict transactions involving cryptocurrency.
The email reads, “If we think you’re making a payment related to crypto assets, we’ll decline it.”
The decision is thought to be due to the mixed messaging by regulators about how to balance innovation versus risk management. The UK Financial Conduct Authority recently said it facilitated talks between banks and crypto firms due to lenders’ hesitancy to service the industry.
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In justifying the crypto payment ban, Chase echoed concerns cited by other UK banks – namely that fraudsters increasingly exploit cryptocurrencies to steal money. While understandable, this rationale also perpetuates the perception that cryptocurrencies predominantly enable crime rather than legitimate uses.
Banks around the globe have made similar decisions in the past for customer security and fiduciary obligations. However, such decisions also affect normal users and the ease with which they can access crypto.