TSB Banking Group Plc, a financial institution headquartered in the United Kingdom. Will soon ban its more than 5.4 million customers from buying Bitcoin (Bitcoin) And other cryptocurrencies.
According to a report According to the “Daily Telegraph” report on Saturday, the bank’s upcoming crypto ban is due to suspected fraud related to cryptocurrency transactions.
According to reports, TSB Bank has received a large number of customer complaints about encryption-related fraud cases. In fact, the British bank stated that approximately 12.5% of cryptocurrency trading platform payments involve transactions, while the proportion of non-virtual currency-related transfers is one in 5,500.
According to reports, cryptocurrency trading giant Binance is related to the increasing number of crypto fraud complaints filed by customers of the bank. Two thirds of the suspected cases are related to Binance, and 849 cases occurred between mid-March and mid-April.
As Cointelegraph previously reported, the Bank of England NatWest issued an encryption scam alert According to reports, after receiving a record number of complaints in the first quarter, it returned to May. In early April, the bank had Anti-encryption notice to customers and customers Stay away from cryptocurrencies.
In addition to Binance, TSB Bank identified U.S. exchange service Kraken as another platform related to a large number of suspected fraud cases. The British bank also criticized the cryptocurrency exchange for not responding to customer complaints related to fraud.
Commenting on the plan to introduce an encryption ban, a spokesperson for TSB Bank stated that the bank has an obligation to protect customers from platforms with “excessive fraud rates”.
TSB Bank has joined a growing list of UK financial institutions that have banned customers from using cryptocurrencies. In addition to NatWest, other British banks such as Barclays and Starling have taken action to prohibit customers from depositing cash on cryptocurrency trading platforms.
In early June, Starling announced that it would Resume allowing customers to deposit cash On the cryptocurrency exchange from Wednesday.
At the beginning of the year, HSBC started Prevent customers from withdrawing profits From cryptocurrency exchanges to their bank accounts.
Although there is no encryption ban in the UK, regulators are still critical of cryptocurrencies. In May, Andrew Bailey, the governor of the Bank of England, warned that Cryptocurrency investors risk losing all their funds.
Bailey’s comment received Similar warning The UK Financial Conduct Authority released it in January.