Chase UK and Binance Impacted by UK Crypto Shakeup

<p>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. </p><p>Down on Crypto</p><p>Debit card <a href="https://www.financemagnates.com/terms/p/payments/">payments</a> and outgoing bank transfers tied to cryptocurrency
transactions will be met with the cold, unyielding refusal of this banking
giant. In an <a href="https://apnews.com/article/chase-uk-bans-cryptocurreny-transactions-c03b555641f2c0af6ccbc03d142e0a1c">email</a>
that raised many eyebrows among media and investors, Chase UK bluntly stated,
"If we think you're making a payment related to <a href="https://www.financemagnates.com/tag/crypto/" target="_blank" rel="follow">crypto</a> assets, we'll
decline it." It even suggested that its <a href="https://www.binance.com/en/feed/post/1221082">customers seek alternative
financial avenues</a> if they wish to dance with the digital coin.</p><blockquote><p lang="en" dir="ltr">Yesterday Chase UK, owned by JPMorgan, banned <a href="https://twitter.com/hashtag/cryptocurrency?src=hash&amp;ref_src=twsrc%5Etfw">#cryptocurrency</a> transactions. This has come as a surprise to many, given that JPMorgan also owns Onyx, the first global bank to offer a <a href="https://twitter.com/hashtag/blockchain?src=hash&amp;ref_src=twsrc%5Etfw">#blockchain</a>-based platform for wholesale payments transactions.<a href="https://t.co/paITvbMCJr">https://t.co/paITvbMCJr</a></p>— #DisruptionBanking (@DisruptionBank) <a href="https://twitter.com/DisruptionBank/status/1714219158383010025?ref_src=twsrc%5Etfw">October 17, 2023</a></blockquote><p>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 <a href="https://www.binance.com/en/feed/post/1372375">stifling customer access to
the crypto world</a>, and the <a href="https://www.financemagnates.com/terms/f/financial-conduct-authority-fca/">Financial Conduct Authority (FCA</a>), 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.</p><p> Growing Levels of Fraud</p><p>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."</p><p>Binance's British Odyssey Comes to an Abrupt Halt</p><p>As if Chase UK's declaration of crypto celibacy wasn't enough, Binance,
<a href="https://www.financemagnates.com/tag/binance/" target="_blank" rel="follow">the world's preeminent cryptocurrency exchange</a>, <a href="https://www.binance.com/en/feed/post/1374447">announced that it would no
longer be swiping right on new UK customers</a>. 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.</p><p>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.</p><blockquote><p lang="en" dir="ltr">NEWS: Binance UK is hitting pause on accepting new UK customers — for now<a href="https://t.co/zSkY3Zo051">https://t.co/zSkY3Zo051</a></p>— Blockworks (@Blockworks_) <a href="https://twitter.com/Blockworks_/status/1713983399596052841?ref_src=twsrc%5Etfw">October 16, 2023</a></blockquote><p>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.</p><p>Desperate to find a solution, Binance released a <a href="https://www.binance.com/en/feed/post/1375239">statement saying</a>,
"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."</p><p>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. </p>

This article was written by Louis Parks at www.financemagnates.com.