As of October 16th, customers of Chase in the UK will face restrictions on utilizing their debit cards or making outbound bank transfers for cryptocurrency payments, according to a communication from the bank.
In an email addressed to its UK clientele, Chase pointed out that transactions deemed to be related to cryptocurrencies will be declined. The email, which was reviewed by CoinDesk, stated, “We’re dedicated to safeguarding our customers’ funds and ensuring their security. In light of the surge in crypto scams targeting UK consumers, we have opted to prohibit the purchase of cryptocurrency assets using a Chase debit card or transferring funds to a cryptocurrency platform from a Chase account,” said a bank spokesperson.
The Trend of Crypto-Unfriendly Banks
Following the trend of crypto-unfriendly banks in the United States, such as Silvergate, Signature, and Silicon Valley, several financial institutions are increasingly distancing themselves from the cryptocurrency sector. Notably, Citibank locked Swan Bitcoin, a trading platform, out of its corporate bank account without prior notice in the previous October.
The Federal Reserve, known for its vigilant stance regarding cryptocurrencies in the traditional banking system, continues to closely monitor crypto-related activities. James Wester, Director of Cryptocurrency and Co-Head of Payments at Javelin Strategy & Research, expressed concern, suggesting that crypto-friendly banks may have faced some form of government targeting.
UK Banks Follow Suit
The lack of regulation has not been confined to the United States. In the UK, multiple banks have also severed ties with the once-booming digital currency industry. Rising apprehensions concerning fraud and market volatility have prompted several UK banks to distance themselves from cryptocurrencies.
Earlier this year, NatWest Group imposed a ban on its retail and wealth customers, preventing them from transferring funds into cryptocurrency assets due to concerns about platform volatility. HSBC and Nationwide have likewise declared restrictions on crypto payments, while Starling Bank has ceased cryptocurrency purchases and sales via debit cards or bank transfers.
It is evident that without the support of the banking sector, cryptocurrencies may face greater challenges in achieving mainstream acceptance.
