TSB UK Bank banned crypto purchases from Kraken and Binance in order to prevent the customers from using these exchanges to purchase crypto due to alleged poor safety measures as we are reading more in our latest cryptocurrency news today.
British banks are making it hard for their customers to get involved with crypto due to concerns related to security and exposure to fraud. As per a report by the Times, TSB UK Bank banned its customers from purchasing crypto with funds managed by the bank and the bank is also concerned about the high fraud rate that is related to exchanges that operate in the country.
The Times claims to have reliable information that the TSB is going to ban the purchase of crypto with cash on Binance and Kraken and apparently, the low-security standards of the platforms facilitate the works of scammers and the set up of e-wallets. As per the reports, TSB received about 900 fraud complaints between March and April by Binance users. The bank claims that all of the attempts to communicate with the Binance team have been unsuccessful. However, Binance says it never received any messages from the security team.
Without referring to TSB directly, a spokesman for Binance reiterated the exchange’s commitment to working for the security of the customers assuring that the company policy will prioritize the issues:
“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.”
But Kraken was more direct as Steven Christie who is the global head of compliance at Kraken denied TBSs allegations but made no reference to the stance that they will take on the possible outbreak of the new wire fraud:
“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.”
Fraud reports are quite a sensitive issue for the banks as it offers a fraud protection service in which it refunds the money that was lost in the event a person has been a victim of a scam. However, the FCA also found that the number of crypto investors increased from last year as did the average worth of crypto holdings by retailers.