JPMorgan‘s (NYSE: JPM) UK-based retail bank Chase has reportedly decided to ban crypto-related transactions that are made by its clients, starting from October 16, 2023. This bank says it made the decision because of a significant rise in fraudulent activities and scams.
A bank representative explained that they’ve seen “an increase in the number of crypto scams targeting UK consumers, so they 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.”
David Janczewski, CEO of Blockchain protection company, CoinCover commented:
“Our recent research highlights the issues some people have with cryptocurrencies and found that security risks are the second largest barrier to adoption behind volatility. Chase UK’s decision to blanket, block crypto-related payments due to concerns about fraud and security is surprising. Whilst we respect the bank’s commitment to safeguarding its customers, there are other means to protect against scams and fraud. Instead of banning all crypto-related activity, which may ultimately cause customers to leave, it is possible to prevent theft and loss by introducing more robust safety measures which can tackle these issues at source.”
According to London’s law firm RPC, data from the UK’s fraud reporting agency Action Fraud reveals that the value of crypto-related fraud in the United Kingdom surged 41% last year — reaching a high of 306 million pounds (around $372.3 million).
Although crypto-related fraud is quite rampant these days, Coinbase Chief Executive Officer Brian Armstrong has still expressed his dissatisfaction with this move from JPMorgan.
Armstrong claims that this is totally “inappropriate behavior” from Chase.
— Brian Armstrong 🛡️ (@brian_armstrong) September 26, 2023