UK subsidiary of JPMorganthe bank Chase warns thatwill no longer authorize its customers to make transactions in connection with the crypto from October 16. Reason: a resurgence of scams and fraud.
Between the banks and the cryptobut appeasement may not come just yet. The British bank Chase has just announced to its customers that it will soon no longer allow cryptocurrency-related transactions.
The company, JPMorgan’s online subsidiary, informed its UK customers by email, confirms the agency AP. Transactions will be refused from October 16, and the policy will apply to transactions carried out via debit card or bank transfer.
Claimed desire to protect customers and their money
For consumers, it’s take it or leave it. Chase is not planning any exemptions, and the crypto rule will be strictly enforced. And if not?
If you still want to invest in crypto-assets, you can try using a different bank or provider – but be careful, as you may not be able to get the money back if the payment turns out to be linked to a fraud or scam,” says Chase.
The bank claims that its decision was motivated by a desire to protect its customers and their money. The upsurge in scams and fraud is said to have prompted the bank to tighten its policy on transactions.
Chase, which has 1.6 million customers, is not the only bank in the UK to cite fraud as a reason for restrictions. In March, NatWest set thresholds for daily and monthly transfers to crypto exchanges – $1,200 and $6,100 respectively.
High, but declining crime in 2023
These practices regularly exasperate players in the crypto industry. Nevertheless, cybercrime and scams dedicated to digital assets remain a real threat, and at a high level. By 2023, however, Chainalysis measures, the trend will be downward compared to the previous year.
Scams are “still the most lucrative form of crypto-currency-based crime”, despite a 77% drop in revenue. It should be noted that the trend was already down the previous year.
Coinbase CEO Brian Armstrong sees Chase’s decision as bad practice, and the consumer protection argument as a sham. On X, he denounces the bank’s “totally inappropriate behavior”.
UK crypto currency holders should close their accounts with Chase if this is how they’re going to be treated,” he says.
Despite this, relations between banks and the crypto industry seem to be improving overall. In France, Coinhouse manages its operations through Société Générale. This is partly due to the increasing competence of traditional finance in the field of tokenization.
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