Emmanuel OchayiIn a bold move to protect its customers from the surging wave of cryptocurrency scams, JP Morgan’s Chase UK bank has announced a comprehensive ban on cryptocurrency purchases starting October 16.
According to Investmentweek, this ban will encompass all debit card transactions and outgoing bank transfers related to cryptocurrencies, marking one of the first outright bans on these digital assets in the UK.
A spokesperson for Chase UK spoke directly to Investment Week, emphasizing the bank’s unwavering commitment to safeguarding its customers’ financial interests.
They stated, “We have seen an increase in the number of crypto scams targeting UK 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.”
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While other UK banks have previously imposed limits on cryptocurrency-related transactions, Chase UK’s outright ban highlights the severity of the issue.
The decision comes in response to a concerning trend of fraudulent activities associated with cryptocurrencies, including phishing schemes and Ponzi schemes, which have led to substantial losses for unsuspecting consumers.
According to recent data from Britain’s fraud reporting agency, Action Fraud, there has been a staggering 40% increase in consumer losses to crypto fraud over the past year.
This alarming surge has pushed total losses related to cryptocurrency fraud in the UK past the £300 million mark for the first time.
JP Morgan’s Chase UK bank’s ban on cryptocurrency purchases is a proactive step to shield its customers from financial harm, signaling a growing concern within the financial industry regarding the risks associated with the unregulated cryptocurrency market.
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