In a move that sent ripples through the cryptocurrency realm, Chase UK, the financial behemoth, has declared that as of October 16, it will slam the door on its clients' attempts to pay with, and move, crypto.

Down on Crypto

Debit card payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term and outgoing bank transfers tied to cryptocurrency transactions will be met with the cold, unyielding refusal of this banking giant. In an email that raised many eyebrows among media and investors, Chase UK bluntly stated, "If we think you're making a payment related to crypto assets, we'll decline it." It even suggested that its customers seek alternative financial avenues if they wish to dance with the digital coin.

Yesterday Chase UK, owned by JPMorgan, banned #cryptocurrency transactions. This has come as a surprise to many, given that JPMorgan also owns Onyx, the first global bank to offer a #blockchain-based platform for wholesale payments transactions.https://t.co/paITvbMCJr

— #DisruptionBanking (@DisruptionBank) October 17, 2023

However, this might leave many in a bit of a pickle, for a crypto-friendly bank in the United Kingdom is as elusive as a double rainbow. UK credit institutions have a track record of stifling customer access to the crypto world, and the Financial Conduct Authority (FCA Financial Conduct Authority (FCA) The Financial Conduct Authority (FCA) is the largest financial regulator for all financial markets in the United Kingdom (UK).The UK regulator is responsible for the conduct of firms authorized under the Financial Services and Markets Act 2000. Moreover, the FCA is also responsible for the regulation of behavior in retail and wholesale financial markets, supervision of the trading infrastructure that supports those markets, and the prudential regulation of firms not regulated by the PRA. Its rol The Financial Conduct Authority (FCA) is the largest financial regulator for all financial markets in the United Kingdom (UK).The UK regulator is responsible for the conduct of firms authorized under the Financial Services and Markets Act 2000. Moreover, the FCA is also responsible for the regulation of behavior in retail and wholesale financial markets, supervision of the trading infrastructure that supports those markets, and the prudential regulation of firms not regulated by the PRA. Its rol Read this Term), the financial watchdog, seems to be their silent confederate. The FCA recently claimed to be the mediator in discussions between banks and crypto firms, as the banks showed a remarkable reluctance to embrace the crypto industry.

Growing Levels of Fraud

Chase UK's email cited concerns about "fraudsters increasingly using crypto assets to steal large sums of money from people" as the primary motivation behind its crypto-payment embargo. This is a reasoning echoed by other UK banks that have previously slapped similar shackles on their clients. A spokesperson for Chase UK, in an email that had the finesse of a mic drop, stated, "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."

Binance's British Odyssey Comes to an Abrupt Halt

As if Chase UK's declaration of crypto celibacy wasn't enough, Binance, the world's preeminent cryptocurrency exchange, announced that it would no longer be swiping right on new UK customers. The revelation came on the same day Chase UK executed its crypto-payment embargo, all in harmony with the new Financial Conduct Authority (FCA) regulations that clamp down on the promotion of digital assets in the UK, which went into effect on October 8.

Binance, with an air of dejection, proclaimed that it would cease accepting new users from 5 PM local time, leaving many hopeful crypto enthusiasts in the lurch. In response, Binance is now playing the waiting game in search of a panacea for its regulatory malaise.

NEWS: Binance UK is hitting pause on accepting new UK customers — for nowhttps://t.co/zSkY3Zo051

— Blockworks (@Blockworks_) October 16, 2023

The crux of the new rules is that crypto firms must keep their lips sealed when it comes to promoting cryptoassets, such as Bitcoin and Ethereum, or non-fungible tokens (NFTs), unless they have the blessing of an authorized company to do so. Binance, in its quest for compliance, had partnered with the peer-to-peer platform rebuildingsociety.com, only to find the FCA, in its own inimitable style, put the kibosh on the website's financial promotions.

Desperate to find a solution, Binance released a statement saying, "We are working closely with the FCA ... are looking to find another suitable FCA-authorized firm to approve our financial promotions as soon as possible."

The UK's relentless crusade against the crypto world is a response to the cataclysmic events triggered by the FTX downfall in late 2022. Chase UK and Binance's decisive actions signify the ongoing tussle between traditional finance and the digital currency revolution.