JPMorgan's Chase UK to Prohibit Crypto Transactions Citing Fraud Concerns

JPMorgan's Chase UK to Prohibit Crypto Transactions Citing Fraud Concerns

Chase, the British retail bank under JPMorgan, has announced its decision to prohibit cryptocurrency transactions conducted by customers starting from October 16. The move is attributed to a rise in fraudulent activities and scams, according to the company's statement on Tuesday.

Chase has noted a surge in cryptocurrency scams targeting consumers in the UK. Consequently, the bank has opted to restrict customers from purchasing cryptocurrencies using Chase debit cards or transferring funds from a Chase account to a cryptocurrency platform, as confirmed by a bank spokesperson.

The British arm of JPMorgan has joined a growing list of UK banks in limiting customer access to cryptocurrencies, citing ongoing concerns regarding their involvement in online scams orchestrated by criminals.

JPMorgan has successfully onboarded over 1.6 million customers to its Chase retail bank since introducing the mobile app-based service in the UK two years ago. The bank intends to expand its consumer bank to other international markets gradually.

Chase notified its customers of the forthcoming policy change via email on Tuesday morning, a spokesperson for the bank has confirmed. 

In March, NatWest implemented new restrictions on the daily and monthly limits for customer transactions to crypto exchanges, with the aim of safeguarding consumers against potential crypto-related criminal activities. Meanwhile, Santander in Spain took steps last year to prohibit UK customers from making real-time payments to crypto exchanges, as part of its efforts to shield customers from scams.

Jamie Dimon Concerns on Fed Interest Rate Hikes

While market sentiments seem to indicate the conclusion of the Federal Reserve's tightening phase, JPMorgan CEO Jamie Dimon is cautioning clients to brace themselves for a worst-case scenario involving benchmark interest rates soaring to 7%, coupled with the challenges of stagflation.

Dimon's statements stand in contrast to the prevailing consensus, which has witnessed a 5.25 percentage point increase that has elevated the benchmark rate to 5.5%, its highest point in 22 years. US policymakers have conveyed that they anticipate keeping rates elevated for an extended duration to combat inflation. However, money markets are currently factoring in rate reductions commencing from next year.

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