Bank TSB is barring its customers from investing in cryptocurrency and is the latest financial institution in the UK to do so.
The TSB Banking Group Plc. from in the United Kingdom has expressed its plans to ban its more than 5.4 million customers from investing in Bitcoin (BTC) and other cryptocurrencies in the coming months.
The Telegraph reported on Saturday that the decision by the bank to ban cryptocurrencies is because of the array of cases of fraud that are allegedly associated with the transactions involving cryptocurrency.
According to reports, Bank TSB has been receiving a lot of complaints from its customers regarding the fraud cases that are all related to crypto. True to its business, the bank from the U.K. stated that 12.5% of its payments to platforms of crypto exchange include transactions that are against one in 5,500 for transfers that are currency-related and non-virtual.
Binance, which is a crypto exchange giant, has been accused to be linked to the rising amount of complaints that are lodged by Bank TSB’s customers that involve crypto fraud. About ⅔ of the alleged cases have been linked to Binance, with 849 cases happening between March and April.
Cointelegraph previously reported that the U.K. bank NatWest has issued a a crypto scam alert way back in May after it received a record number of complaints in the first quarter. Last April, the bank announced a notice on anti-crypto to its clients as well as customers for them to defer from cryptocurrencies.
Binance is not the only platform, however, as TSB Bank has also identified Kraken, a United States exchange service platform, to be connected to a number of significant fraud cases. Bank TSB has also condemned the crypto exchanges for not giving any response to the fraud-related complaints by customers.
A spokesperson for TSB Bank, furthermore, stated that it is the obligation of the bank to protect its customers from the platforms that have high fraud rates.
With this, TSB Bank joins the expanding list of other financial institutions from the U.K. that have prevented its customers to transact with crypto. Other British banks include Barclays and Starling in the decision to stray away from any cryptocurrency trading platforms.
Starling notably announced earlier in June that it would be allowing customers again to deposit cash using crypto exchanges. In the first quarter, HSBC also began barring customers from withdrawing cash from crypto exchanges to their accounts.
Despite not having a crypt ban in the United Kingdom, the regulators have remained their stance against cryptocurrencies. Last May, Governor Andrew Bailey of the Bank of Englan has given a warning to crypto investors against the risk of losing all of their money.
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