UK based financial institution TSB Banking Group Plc. will soon ban its 5.4 million customers from buying Bitcoin (BTC) and cryptocurrencies.
According to a report by The Telegraph on Saturday, the bank’s upcoming crypto ban stems from suspected fraud related to cryptocurrency transactions.
Bank TSB has reportedly received a large number of customer complaints about fraud related to cryptocurrencies. In fact, the UK bank says around 12.5% of payments to crypto exchange platforms involve transactions, versus one in 5,500 for non-virtual currency related transfers.
Crypto exchange giant Binance has reportedly been linked to the rising number of complaints of crypto fraud from customers of the bank, with two-thirds of the suspected cases being related to Binance, with 849 cases occurring between mid-March and mid-April.
As Cointelegraph reported, UK bank NatWest issued a crypto fraud warning back in May after reportedly receiving a record number of complaints in the first quarter. At the beginning of April, the bank had delivered an anti-crypto notice to customers and customers in order to stay away from cryptocurrencies.
In addition to Binance, TSB Bank identified the US stock exchange service Kraken as another platform that is linked to a significant number of suspected fraud cases. The UK bank also criticized crypto exchanges for failing to respond to fraudulent customer complaints.
A spokesman for TSB Bank commented on the plans to introduce a crypto ban, noting that it was the bank’s obligation to protect customers from platforms with “excessive fraud rates”.
TSB Bank joins a growing list of UK financial institutions that have banned customers from cryptocurrencies. Aside from NatWest, other UK banks such as Barclays and Starling have started banning customers from depositing cash on cryptocurrency trading platforms.
Connected: The British Starling Bank will resume cryptocurrency deposits at the end of June
At the beginning of June, Starling announced that customers will be able to deposit cash into crypto exchanges again from June 23.
Earlier this year, HSBC began preventing customers from withdrawing profits from crypto exchanges to their bank accounts.
While there is no crypto ban in the UK, regulators remain critical of cryptocurrencies. In May, Bank of England Governor Andrew Bailey warned that crypto investors are at risk of losing all of their money.
Bailey’s comments reflected a similar warning from the UK Financial Regulator in January.