UK banking institution TSB plans to ban the purchase of cryptocurrencies. The reason for the ban is that customers are reporting an alarming number of fraudulent transactions involving cryptocurrency exchanges. As stated by The Times, the bank will introduce a ban in the coming weeks. This action may leave over five million customers without access to cryptocurrency exchanges.
According to TSB statistics, one in eight cryptocurrency purchases ends in fraudulent activity. Criminals use these platforms to deceive customers and take control of their accounts, stealing their funds.
The bank blames Binance to be a hub for fraudulent activities
The bank said about two-thirds of all crypto scams that hit its customers were linked to the Binance platform, with 849 cases of customers losing money to scammers with Binance accounts in a single month between March 15 and April 15. However, Binance denied those claims. A spokesperson for the exchange stated that the platform is “very serious” when it comes to dealing with this type of action. The crypto exchange Kraken also denied the claims the TSB made in its report, stating that it is not true that Kraken does not respond to calls for assistance on incidents of fraud.
TSB is the latest bank to announce some sort of measure against cryptocurrency trading. In June, Barclays, Monzo and Starling, as well as other UK banks, blocked cryptocurrency purchases for similar reasons.