JPMorgan’s Chase Bank in the UK Restricts Cryptocurrency Transactions
JPMorgan’s retail bank, Chase, in the United Kingdom has decided to limit customers’ access to cryptocurrency-related transactions due to the increasing number of scams and fraud cases. Starting from October 16, customers will have a limit on their ability to engage in crypto transactions within the UK.
According to a JPMorgan spokesperson, the bank has observed an increase in crypto scams targeting UK consumers, which has led to the decision to prevent the purchase of crypto assets using a Chase debit card or by transferring money to a crypto site from a Chase account.
It is important to note that JPMorgan entered the UK market in September 2021 with the launch of its digital-only consumer bank under the Chase brand. Since then, it has attracted more than 1.6 million customers and holds over £10 billion in customer deposits in the country. The bank has also processed more than 90 million card and payment transactions.
In the United States, banks were initially not allowed to hold cryptocurrencies until the Office of the Comptroller of the Currency granted permission in July 2020. This amendment allowed banks to explore cryptocurrency operations.
Although more banks and financial institutions have embraced cryptocurrencies due to increased demand, crypto assets like Bitcoin and Ethereum remain largely unregulated in the UK, which raises concerns.
Chase is not the first bank to restrict crypto transactions. Earlier this year, banks like NatWest Group plc and Banco Santander imposed tighter restrictions on UK customers looking to use crypto.
NatWest imposed new limits on the daily and monthly amounts consumers can send to crypto exchanges to protect customers from crypto-related scams. NWG customers can now only send a maximum of £1,000 per day and £5,000 over a 30-day period to crypto exchanges.
Similarly, Banco Santander announced that it would block UK customers from sending real-time payments to crypto exchanges. While customers cannot make payments from their accounts to Binance, they can transfer funds to their accounts from Binance.
A Little on JPMorgan’s Crypto Exposure
Despite JPMorgan CEO Jamie Dimon’s disinterest in cryptocurrencies, the bank has been a leader in experimenting with blockchain and metaverse technology.
JPMorgan became the first major US bank in July 2021 to allow its financial advisors to provide all wealth management clients with access to cryptocurrency funds. Additionally, the bank has offered its Private Bank wealth management customers access to an in-house passively managed Bitcoin fund.
The bank also launched a division called Onyx, which focuses on digital assets and its own digital currency called JPM Coin. JPM Coin was introduced in 2019 to facilitate internal transactions in euros and dollars for corporate clients.
Furthermore, JPMorgan is exploring the concept of launching a blockchain-based deposit token for customers, pending regulatory approval. If approved, the bank may launch the token in less than a year.
In the past six months, JPMorgan’s shares have gained 12.5% compared to the industry’s growth of 3.2%.
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