Chase U.K. to Block Crypto Payments Citing Fraud, Scams

Banking giant Chase is banning crypto-linked payments via debit card or by outgoing bank transfer for U.K. clients starting Oct. 16, according to an email to customers.

"If we think you're making a payment related to crypto assets, we'll decline it," the email said, adding that customers are free to use a different bank or provider to invest in crypto.

However, finding a crypto-friendly bank in the country may not be the easiest thing, as U.K. credit institutions have a history of blocking or limiting customer access to crypto. The local financial watchdog – the Financial Conduct Authority (FCA) – recently said it had facilitated discussions between banks and crypto firms because lenders have shown a reluctance to offer services to that industry.

In the email, reviewed by CoinDesk, Chase said it was banning crypto payments because “fraudsters are increasingly using crypto assets to steal large sums of money from people” – a reason cited by other U.K. banks that have previously imposed similar limitations.

“We’re committed to helping keep our customers’ money safe and secure. We’ve seen an increase in the number of crypto scams targeting U.K. 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,” a spokesperson for Chase U.K. said in an email.

UPDATE (Sept. 26, 13:41 UTC): Adds statement from Chase U.K. in last paragraph.