JPMorgan’s UK bank is set to restrict cryptocurrency-related payments for its customers starting next month in a bid to combat bad actors using it for scams and frauds. The ban is set to come into effect on October 16.
Several banks in the UK, including HSBC and NatWest, have set restrictions on cryptocurrency-related transactions, but haven’t outright banned them. Per Chase, after October 16 customers will “receive a declined transaction notification if they do attempt to make a crypto-related transaction.”
The move comes over data showing a high rate of cryptocurrency scams and fraud in the UK, including false celebrity endorsements and fake investment opportunities. The firm referred to data from Action Fraud, the UK’s fraud reporting agency, showing that cryptocurrency fraud losses surged over 40% year-over-year as of May 2023.
According to the data, cryptocurrency-related fraud losses surpassed £300 million ($365 million) for the first time.
While the move isn’t part of JPMorgan-wide policy, the bank has banned customers from buying cryptocurrencies with credit cards in 2018. Its chief executive Jamie Dimon has long been a critic of cryptocurrencies and called Bitcoin a “hyped-up fraud” in January.