Chase Bank has announced plans to halt Bitcoin and other cryptocurrency-related payments for its UK clientele. While this step is sudden, it is not unexpected. What is suspicious though, is two banks banning crypto within 24 hrs hours. Whether you’re a blockchain enthusiast, a casual investor, or intrigued by the world of digital currencies, this news is sure to draw your attention.
Chase Bank sent out an email to its UK customers stating, “If we think you’re making a payment related to crypto assets, we’ll decline it,”. According to the email, the ban will go into effect on October 16, 2023.
While a bank banning or limiting the use of Bitcoin and crypto is not a new thing, Chase Bank, a subsidiary of JPMorgan Chase Bank is an influential financial institution. Jamie Dimon, CEO of JP Morgan Chase Bank has been skeptical of Bitcoin and Crypto for some time now, even going as far as to call the whole industry a fraud.
The email sent out to Chase Bank UK customers seems to suggest that the new regulation was prompted by the increase in fraudulent activity using this financial instrument. Moreover, the Bank told its customers they were free to use other banks if they wanted to invest in cryptocurrencies.
Bankwest Bank is Also Changing the Rules on BTC and Crypto Transactions
This move comes just a day shy of Bankwest rolling out eerily similar conditions for its customers. The new conditions affect the Bank’s credit card users. Under the new regulations, the bank will cancel a customer’s account if he or she makes a payment to a cryptocurrency exchange.
These recent moves by major banks signal a turning tide in the financial sector’s approach to cryptocurrencies. It’s clear that while digital currencies continue to gain traction globally, traditional financial institutions are grappling with integrating this new technology into their existing frameworks.
While these regulations may present a temporary roadblock for crypto enthusiasts, they also underscore the need for enhanced security measures within the crypto space.