TSB Bank Of United Kingdom To Cut Ties With Crypto Exchanges

UK bank TSB is taking strict actions to prevent its customers from using exchanges like Kraken and Binance to buy crypto because of their alleged poor safety measures.

Intending to reduce the number of frauds caused due to E-wallet scams, many British banks are making it difficult for their customers to get involved with crypto. In a report published by the British newspaper The Times, TSB bank is about to ban its 5.4 million customers from purchasing crypto with funds managed by the bank. TSB is majorly concerned about an “excessively high” fraud rate related to crypto exchanges operating in the country.

TSB will be blocking its customers from sending money to trading platforms such as Binance and Kraken on concerns scammers are being allowed to set up an e-wallet and steal people’s money. The published reports stated two-thirds of all frauds involving crypto were tied to the Binance platform. Furthermore, the reports stated, in 30 days, 849 TSB savers reported losing funds from Binance. The TSB bank also claimed that Binance “hardly ever” responds to allegations of customer fraud.

A spokesperson from Binance asserted “Binance is very serious about its responsibility to protect users from scams. When we are made aware of these claims, we immediately take action and have an excellent record of working with law enforcement agencies.” Denying the allegations by TSB bank, the global head of Compliance at Kraken, Steven Christie voiced, “We categorically deny the allegation that Kraken does not respond to calls for assistance on incidents of fraud. Kraken responded to well over 1,000 different requests from law enforcement agencies in 2020 alone. Kraken operates in full compliance with law enforcement agencies.”

However, the TSB bank has not issued any official statement regarding its stance towards Kraken or Binance. Besides the interest of UK regulators in overseeing cryptocurrency-related activity has been increasing exponentially.

Disclaimer: The author’s views and opinions are for informational purposes only and do not constitute financial, investment, or other advice.