JP Morgan Bans Bitcoin Payments for English Clients

Key facts:
  • The British branch of the bank claims that this measure seeks to “protect customers” from fraud.

  • This could be a setback in the progress of Bitcoin banking adoption.

The British arm of US bank JP Morgan, Chase UK, will prevent its UK users from buying Bitcoin (BTC) and cryptocurrencies through that entity’s financial products.

in launchwhich was released on Tuesday 26 September, Chase UK has informed customers They will no longer be able to conduct transactions with cryptocurrencies Using the bank’s debit card or through outgoing bank transfers.

This measure comes into effect from October 16, so, from now until then, Chase customers in the UK They can still use the bank’s products to enter the Bitcoin ecosystem And cryptocurrencies. Then it would be impossible.

This is because from October, customers will be notified Failed transfers when trying to perform operations Related to cryptocurrencies, says the British company affiliated with the American bank.

The UK is one of the countries most adopting Bitcoin and cryptocurrencies. He is currently carrying Fourteenth place From the Global Adoption Index conducted by blockchain analysis firm, Chainalogy, Which indicates a high rate of use of crypto assets in that country.

Cryptocurrency purchases using the Chase UK debit card have been blocked. Source: Chase UK.

“Protect customers and keep their money safe”

Chase UK, with 1.6 million Of the customers, she claimed in her statement that the action was taken under pretense “Protect customers and keep their money safe.”

“Scammers are increasingly using crypto assets to steal large sums of money from people,” the statement adds. diffuse On CNBC.

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Therefore, the JP Morgan affiliate uses its authority to restrict client transactions, Prevent them from getting what they want with their money.

Bank client, alias @JacobWLMS, Disclaimer The British subsidiary of JP Morgan intends to determine what its customers want and what they can buy.

“I don’t want to buy cryptocurrencies and probably never will, but what makes you think you can tell me what I can and can’t spend my own money on?” the banking client dismissed in a message posted on X (formerly Twitter).

The bank used data from the Office for National Statistics for its argument and decision. According to this entity, scams related to cryptocurrencies It accounted for more than 40% of all crimes Reported in England and Wales in 2022.

In this sense, the bank urged customers who still want to invest in cryptocurrencies to “try using a different bank or service provider.” “But be careful, because you may not be able to get the money back if the payment ends up being fraudulent or fraudulent,” the bank says. review AP.

What the British subsidiary did not mention was that this bank made the payment Nearly $40,000 million since 2020 in fines Related to fraud and other crimes that exploit the vulnerability of consumers to obtain illicit profits.

Just as it is She suggests Kyle Schnepps, a director of public policy at mining pool Bitcoin Foundry, could be considered a financial entity Attempts to link financial crimes to the use of Bitcoin and cryptocurrencies. And above all, for those for which JPMorgan itself had to pay billions of dollars.

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Fear that this trend will spread to Europe

Given Chase UK’s ban on its customers from purchasing cryptocurrencies, there are members of the Bitcoin and other crypto assets community Who express concerns that this trend will spread to other European banks.

Cryptocurrency investor and user, alias @Crypt0Habibi, to caution On X (formerly Twitter) that with Chase UK banned in the UK, “It is only a matter of time before the same thing happens in Europe.” He criticized, saying: “Idiots rule the world.”

In the same vein, user @EJFoxen to caution For the path that Chase UK is taking regarding the cryptocurrency ecosystem. He also said that for these assets to continue to be the solution to financial freedom, “The bank failure has to happen.”

setback?

The decision of the British arm of JPMorgan to prevent its clients from dealing in digital currencies through its channels, It can be interpreted as a setback in progress Which various financial entities had in favor of the cryptocurrency ecosystem.

Aside from rejecting Chase UK, it has been noted that banks such as BBVA, BNY Mellon, Societe Générale, Goldman Sachs, US Bank, BTG Pactual, and Chase UK’s parent company, JP Morgan; They have been entering the crypto sector for several months.

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This trend has been driven by increasing institutional adoption of Bitcoin, the need for banks to evolve or disappear, and the emergence of new regulatory frameworks.

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