JP Morgan’s retail bank is preventing British clients from purchasing cryptocurrencies in October.JP Morgan, a banking behemoth, confirmed that Chase, its retail arm, is ceasing its UK clients from carrying out crypto transactions.
The announcement demonstrated that starting from October 16, UK clients will not be able to purchase digital assets on a Chase debit card or via funds transfer to any crypto platform from their Chase account.
Chase UK Freezes Crypto-Related Transactions
Via an email on Tuesday to a media firm, Chase explained that the move ‘sought to safeguard clients and secure their money.’ In a note to clients, the bank claimed the move was evoked by a rise in crypto frauds aimed at United Kingdom clients.
The statement added that if one still prefers investing in crypto assets, they can utilize another bank or provider. However, caution is necessary since getting the money might be impossible if the payments are linked to a scam or fraud. An email from a representative claimed that crypto frauds are part of a vast ‘scam’ epidemic that comprised more than 40% of all crimes reported in Wales and England last year.
Crypto-Related Transactions Cost Chase UK Million-Dollar Settlement
The bank has experienced challenges establishing how to deal with clients purchasing crypto. In 2020, Chase U.S. was involved in a lawsuit asserting that in 2018, it froze clients who utilized Chase credit cards to purchase crypto assets. Ultimately, this case was settled out of court for $2.5M.
At that time, Chase Bank likened cryptocurrency purchases to ‘cash-like transactions’ based on its terms of service. As such, it was liable for cash advance fees. However, a judge claimed that the petitioners had fruitfully demonstrated that ‘cash-like’ transactions only apply to fiat currency transactions.
The move by Chase UK to sever ties with the digital assets ecosystem comes at a time when the Euro banking partner for Binance Paysafe terminated its existing deal. A similar experience befell Binance in Australia when leading banks denied banking for crypto exchange firms.
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