UK-based TSB bank is set to bar its 5.4 million customers from purchasing crypto assets amid rising concerns over security and the set-up of e-wallets. Citing an “excessively high” rate of fraudulent activities connected to crypto exchanges, the bank has decided to block customers from sending funds to trading platforms. The latest initiative is part of the institution’s ongoing efforts to curtail the dramatic spite in cybercrimes.
<h2>TSB Bank to Distance Itself From Crypto Exchanges </h2>
According to British news publication <a href="https://www.thetimes.co.uk/article/699bef70-d064-11eb-9bfa-a3bc386e6928?shareToken=56faee1dfc2ad7db031fc68eaf2fd716" target="_blank" rel="nofollow noopener">The Times</a>, TSB is especially concerned about trading sites such as Binance and Kraken. The bank believes that these platforms are plagued by myriad security issues that enable scammers to fly under the radar and successfully set up e-wallets. 

During March 15 and April 15, the bank claims to have received 849 fraud complaints submitted by Binance users. TSB alleges that Binance has been unresponsive to all its attempts at communication. 

For its part, Binance has reiterated that the platform is dedicated to customer security, and the issue remains of paramount importance. A spokesperson for the company said: “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.”

On the other hand, <a href="https://www.cryptoknowmics.com/news/kraken-reconsiders-direct-listing-may-opt-for-an-ipo-instead/">Kraken</a> has come forward to deny the bank’s allegations directly. Addressing the current situation, Steven Christie, global head of compliance at Kraken, stated: “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.”
<h2>The Development Is a Worrying Sign for Crypto Investors</h2>
Crypto scams are a delicate issue that may erode the interest of potential investors in a burgeoning market. While there are measures that banks like TSB implement to safeguard customer interest, investors are often requested to be vigilant about their crypto transactions.

[embed]https://twitter.com/TSB/status/1404734771620716549[/embed]

The interest in cryptocurrencies is only growing with time. This week <a href="https://www.cryptoknowmics.com/news/fca-survey-suggests-uk-citizens-are-confident-in-cryptocurrencies-and-sees-it-as-an-investment/">UK’s Financial Conduct Authority</a> unveiled the results of a survey that suggested a significant jump in the number of retail cryptocurrency investments. However, it also found that the number of scammers advertising fraudulent schemes has surged at the same time.

The advent of crypto trading platforms has opened up a pool of investment opportunities for people while also making them vulnerable to attacks from bad-faith actors who capitalize on their lack of technical knowledge. This adds to a compounding challenge for law enforcement authorities that are seeking a legal framework to contain crypto-related crimes.

UK-Based TSB Bank Set to Ban Crypto Purchases Due to E-Wallet Scams

UK-based TSB bank is set to bar its 5.4 million customers from purchasing crypto assets amid rising concerns over security and the set-up of e-wallets.

Divya is a postgraduate from Jawaharlal Nehru University specializing in International Relations and a professional writer with more than 5 years of experience writing for the web. She is an avid reader interested in the global financial system and the effects of decentralization. At Cryptoknowmics, she hopes to deliver clear and understandable content to inform readers about the latest events in the crypto sector.

UK-Based TSB Bank Set to Ban Crypto Purchases Due to E-Wallet Scams

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