Banking giant Chase has announced that it will prohibit crypto-linked payments for its U.K. clients starting October 16th. The decision was communicated to customers through an email, which stated that any payment related to crypto assets would be declined. The bank, however, emphasized that customers were free to explore alternative banking institutions or providers for their crypto investment needs.
This move by Chase is not the sole incident in the United Kingdom. Several U.K. credit institutions have a history of either blocking or limiting customer access to cryptocurrencies. The Financial Conduct Authority (FCA), the local financial watchdog, has even intervened to facilitate discussions between banks and crypto firms due to the hesitation of lenders to offer services to the crypto industry.
The email from Chase cited the primary reason for the ban as the increasing use of crypto assets by fraudsters to steal significant amounts of money from unsuspecting individuals. This cause aligns with similar justifications provided by other U.K. banks that have previously imposed restrictions on crypto-related transactions.
It remains to be seen how this decision by Chase will impact the crypto landscape in the U.K. as customers seek alternative solutions for their crypto investments amidst a challenging banking environment. As the crypto industry continues to evolve, regulatory and institutional responses like these are likely to play a pivotal role in shaping its future in the United Kingdom and beyond.
Recently, in a report by Todayq News on June 28, 2023, King Charles III approved the Financial Services and Markets Bill 2023, granting the UK government authority over financial services, including crypto assets. This move aimed to strengthen the economy post-pandemic, attracting crypto companies. The law enhanced competitiveness, safeguarded consumers, and advanced the UK as a financial hub with high regulatory standards, aligning to create an advanced, accessible, and eco-friendly financial industry for all.
However, the recent exploitation in the realm of cryptocurrency by hackers has prompted such action by a prominent bank. Recently, a report by Todayq News on September 12, 2023, revealed that CoinEx suffered a $55 million hack, with losses including $6 million in Bitcoin, $18.5 million in Ethereum, and $6 million in XRP.
Especially noteworthy, one of the most prominent groups of hackers comes from North Korea, they have stolen an estimated $2 billion in cryptocurrency over the past five years, with $200 million stolen in 2023 alone, making up 20% of this year’s total. They use phishing, supply chain attacks, and advanced on-chain laundering techniques to evade detection.
