Katherine Ross

Starting on Oct. 16, JPMorgan Chase UK customers will not be able to make crypto transactions via bank transfer or debit card.&nbsp;



Crypto-related transactions will be declined from October onwards, a <a href="https://blockworks.co/tag/jpmorgan-chase">Chase</a> spokesperson explained in an email to Blockworks. Wire transfers to crypto exchanges will be included in the ban.



“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 Chase spokesperson said.



The bank cited a study from Action Fraud, the fraud reporting agency in <a href="https://blockworks.co/tag/UK">Britain</a>, which found that consumer losses connected to fraud increased by 40% and surpassed 300 million British pound sterling.&nbsp;



In an email to customers, Chase said that customers can switch banks or providers but cautioned that customers “may not be able to get the money back if the payment ends up being related to fraud or a scam.”



Read more: <a href="https://blockworks.co/news/crypto-startups-uk-bank-accounts">Crypto Startups Find UK Banks Won&#8217;t Give Them Accounts</a>



Chase isn’t the first bank to either block or limit crypto transactions. <a href="https://blockworks.co/news/uks-natwest-paysafe-distance-from-crypto-as-banks-roil">Multiple banks, earlier this year, imposed tighter restrictions</a> on UK customers looking to use crypto.



The Royal Bank of Scotland, back in March of this year, moved to limit transfers to crypto exchanges.&nbsp;



On its support center <a href="https://www.supportcentre-rbs.co.uk/Searchable/1693188662/Payments-Cryptocurrency.htm">page</a>, RBS said that it will “block or limit online banking and mobile app Faster Payments and Debit Card transactions made to these exchanges to £1k a day and £5k in any 30-day period, until further notice. These limits apply separately to each account.”



Read more: <a href="https://blockworks.co/news/uk-crypto-payment-regulation#:~:text=And%20if%20a%20bank%20in,case%2Dby%2Dcase%20approach.">The UK isn&#8217;t giving crypto firms a chance </a>



Santander also limits crypto-related transactions, though it prohibits payments from a customer&#8217;s account to Binance. Customers can, however, transfer funds to their accounts from Binance.&nbsp;



There are other banks and providers that UK customers can use, including both Revolut and Monzo.&nbsp;



Monzo, on its <a href="https://monzo.com/help/payments-getting-started/is-crypto-allowed/">site</a>, says that customers can “use a range of cryptocurrency exchanges as part of your personal banking with us.”



Revolut, which <a href="https://blockworks.co/news/revolut-halt-crypto-us">announced the shuttering of its US services</a> in early October, also allows UK customers to send crypto. Its <a href="https://help.revolut.com/help/wealth/cryptocurrencies/transferring-cryptocurrencies/sending-cryptocurrency/">site</a> warns that it “cannot retrieve funds sent to the incorrect address or using the incorrect network.”



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JPMorgan Chase UK imposes ban on crypto transactions

Casey Wagner

<div id="highlights-block_62966fa71b63d" class="highlights">
 <ul>
 <li>More digitized payment models are going to continue to emerge, JPMorgan analysts estimate</li>
 <li>“Digital transformation is not a sprint, it’s a marathon, but it also has no finish line,” a JPMorgan Jeremy Balkin said</li>
 </ul>
 
</div>



JPMorgan Chase is amping up its investments in payment processors, and — according to the global bank’s head of innovation and corporate development — everyone else in the financial services industry should follow suit.&nbsp;



“Continue to focus on payments, because I think that&#8217;s a space that&#8217;s borderless,” Jeremy Balkin said at the Mediterranean Business Summit in New York Tuesday.



Earlier this year, JPMorgan moved to acquire around 49% of Athens-based payments services provider Viva Wallet. In 2021, the bank made nearly 20 total investments in the fintech space, including acquiring a 75% stake in <a href="https://www.jpmorgan.com/news/jpmorgan-to-take-majority-ownership-of-volkswagen-payments-business" target="_blank" rel="noreferrer noopener">Volkswagen Payments</a>, a platform designed for the automotive industry.&nbsp;



“I think payments…[are] the natural tip of the spear for financial services as it relates to intersecting with the new world of fintech,” Balkin said. “I think it&#8217;s the ideal space to collaborate and to build your business models to move money faster, safely, more efficiently.”&nbsp;



Banks with the ability to custody the digital assets of clients and be competitive in the landscape are going to be the most successful in coming years, he added. 



JPMorgan analysts estimate tech modernization efforts will top $2.8 billion in 2022, a billion dollar increase from 2019. This increase in technology infrastructure will lead to more than $5 trillion in payments, the bank said in <a href="https://www.jpmorganchase.com/content/dam/jpmc/jpmorgan-chase-and-co/investor-relations/documents/events/2022/jpmc-Investor-Day-2022/2022-consumer-community-banking-investor-day.pdf" target="_blank" rel="noreferrer noopener">materials</a> released as part of its 2022 investor day.



“Winning in payments is our strategic imperative,” analysts wrote.&nbsp;



Payments service providers such as PayPal and Block have “done an incredible job penetrating the consumer market,” Balkin said, adding, “the question is what happens in this new environment of interest rates, the cost of capital is not free.”&nbsp;



Balkin expects ample consolidation in payments to come, and the biggest companies are likely going to continue to thrive — akin to Amazon&#8217;s rise during the dot-com bubble. 



Digital banking is only going to continue ramping up, Balkin said, meaning the focus on virtual is more important than ever. In 2021, more than 65% of JPMorgan accounts were opened online, analysts said.&nbsp;



“Digital transformation is not a sprint, it’s a marathon, but it also has no finish line, it&#8217;s perpetual, it has to continue,” Balkin said.



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