British banks are moving to make it increasingly difficult for their customers to get involved in the cryptocurrency market, citing security and fraud concerns.
TSB Bank argues and justifies its ban due to the high rate of fraud related to cryptocurrency trading platforms operating in the country.
Banning cryptocurrency trading platforms for safety reasons:
According to “The Times” newspaper, which reported that it has reliable information that TSB Bank will ban the purchase of cryptocurrencies with cash via Binance and “Kraken”, given, according to the bank’s view, the low security standards of these platforms that facilitate the work of fraudsters, especially the preparation of wallets. e.
According to the same source, TSB received at least 849 fraud complaints between March 15 and April 15 by Binance users.
The bank claims that all attempts to contact Binance have been unsuccessful.
Meanwhile, Binance says it has never received any messages from the bank’s security team.
Without directly referring to TSB, a Binance spokesperson reiterated the trading platform’s commitment to working for the security of its customers, emphasizing that it is the company’s policy to prioritize resolving the issue:
Binance is very serious about its responsibility to protect users from fraud.
When we become aware of these allegations, we take action immediately and have an excellent record of working with law enforcement agencies.
But the Kraken spokesperson was more direct.
Stephen Christie, Kraken’s global head of legal compliance, denied the TSB allegations, though he did not indicate what position they would take on the matter, stating:
We categorically reject the claim that Kraken does not respond to requests for assistance with fraud incidents.
Kraken responded to over 1,000 different requests from law enforcement agencies and agencies in 2020 alone.
Kraken operates in full compliance with law enforcement agencies.
So far, TSB has not issued any official statement regarding its stance on Binance or Kraken, however the interest of UK regulators in overseeing crypto-related activity is growing.
Recently, a survey conducted by the UK Financial Conduct Authority revealed that the number of cryptocurrency investors has increased from last year, as well as the average value of cryptocurrency holdings by retail traders.
The FCA also found that the number of people who had a poor understanding of cryptocurrency also increased even though they invested in it.
This is a worrying development for law enforcement and crime prevention agencies, as it provides fertile ground for fraudsters and criminals to take advantage of a potentially larger pool of less conscious victims than in previous years.