TSB Bank wants to ban 5.4 million customers from buying cryptocurrencies
The British financial institution TSB Banking Group Plc. will soon ban over 5.4 million of its customers from buying Bitcoin (BTC) and cryptocurrencies.
According to a report by The Telegraph on Saturday, the lender’s impending crypto ban is due to fraud cases involving alleged crypto transactions.
TSB Bank is stated to have received a lot of complaints from customers about instances of crypto fraud. In reality, the UK bank claims that around 12.5percent of payments to crypto exchange platforms demand trades, compared to 1/500 for transfers which don’t involve money transfers.
Cryptocurrency giant Binance has allegedly been involved in an increasing number of crypto fraud complaints filed by customers of the lender, with two-thirds of the suspected cases being associated to Binance, with 849 cases occurring between mid-March and mid-April.
As previously reported Cointelegraph, UK bank NatWest issued a crypto fraud warning in May after receiving a record number of complaints in the first quarter. In early April, the bank sent an anti-crypto note to customers and customers to stay away from crypto.
In inclusion to Binance, TSB Bank recognized the US stock market Kraken as another platform implicated in a large number of suspected fraud cases. The Bank of Great Britain also criticized crypto exchanges for failing to respond to customer complaints regarding fraud.
Regarding the program to present a ban on cryptocurrencies, a spokesman for TSB Bank commented that the bank was obliged to shield customers from platforms with “excessive fraud rates”.
TSB Bank joins a growing list of UK financial institutions which have prohibited customers from using cryptocurrencies. In inclusion to NatWest, other UK banks such as Barclays and Starling have begun banning customers from depositing money on crypto trading platforms.
Connected: The British Starling Bank will restart cryptocurrency deposits at the end of June
In early June, Starling declared that customers will last to be able to deposit money into crypto trades from June 23.
Earlier this year, HSBC started preventing customers from withdrawing earnings from crypto exchanges to their bank account.
Although there isn’t any crypto ban in the united kingdom, regulators continue to be critical of cryptocurrencies. In May, Bank of England Governor Andrew Bailey cautioned that crypto investors are in danger of losing all their money.
Bailey’s remarks echo a similar warning from that the UK Financial Conduct Authority in January.