Chase UK told customers that it will block them from making cryptocurrency transactions in a bid to protect them from the increasing number of frauds and scams associated with crypto.
The bank told customers in a Tuesday (Sept. 26) email that it will implement the measure starting Oct. 16. Chase UK shared the email and a statement with PYMNTS.
“To help keep your money safe from frauds and scams, we’re changing the types of payments you can make from Chase,” the bank said in its email to customers. “From 16 October 2023, if we think you’re making a payment related to crypto assets, we’ll decline it.”
The bank added in the email that it is making the move to keep customers safe from fraudsters who are increasingly using crypto assets to steal money from people. It added that customers should be cautious if they try to invest in crypto assets using a different bank or provider.
“We’re committed to helping keep our customers’ money safe and secure,” a Chase spokesperson said in a statement provided to PYMNTS. “We’ve seen an increase in the number of crypto scams targeting U.K. consumers, so we have taken the decision to prevent the purchase of crypto assets on a Chase debit card or by transferring money to a crypto site from a Chase account.”
Chase UK’s decision follows in the footsteps of other U.K. lenders, including HSBC and Nationwide Building Society, which have already tightened limits on retail customers’ access to crypto assets earlier this year
HSBC and Nationwide Building Society announced March 2 that they were banning cryptocurrency purchases using credit cards for their retail customers and tightening restrictions on debit card purchases of crypto to a daily limit of $6,000.
The U.K.’s Financial Conduct Authority (FCA) has labeled crypto as high risk for several years, cautioning consumers that they are unlikely to be compensated by the government if they lose money and even threatening crypto executives with jail time if they violate certain rules.
Since its launch in September 2021, Chase UK has gained popularity, attracting 1 million customers within its first year of operation, Bloomberg reported Tuesday.
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