- TBS bank has plans to prohibit its clients from investing in cryptocurrency
- The bank has received numerous complaints related to crypto-fraud, which led the bank to take such a step
- Binance has been observed by the bank being linked with the two-third of the fraudulent cases
- Kraken is the second platform linked with the cases as per TBS bank
- The bank’s real intention is to protect its users from high-rated fraud platforms
Trustee Savings Bank (TSB) is a financial institution based in the United Kingdom. The bank was established to accept savings deposits with moderate means. Recently the bank published caution to its users regarding crypto investments. Moreover, the bank claimed that it would soon ban its more than 5.4 million clients from purchasing any sort of crypto asset. According to a spokesperson, it was revealed that the bank intends to protect its clients from fraudulent platforms.
Why will TBS prohibit crypto investment?
The TSB has plans to prevent its users from investing in cryptos. On Saturday, the bank reported that it would ban cryptocurrency due to alleged cases of fraud associated with crypto transactions. Moreover, the bank revealed that it had received several complaints regarding crypto-related scams.
TBS noted that approximately 12.5% of payments to digital assets exchange platforms involve transactions as one in 5,500 for non-virtual currency-related transfers.
Binance is linked to fraudulent platforms
The number of fraud complaints lodged by the TBS clients was massive. Among the cases, the bank noted that Binance, one of the biggest cryptocurrency exchanges in the scenario, is involved in the claims. Notably, two-third of the suspected cases are observed to be linked with the exchange. Moreover, among the instances, about 849 cases occurred from mid-April to mid-May.
TSB has also identified Kraken, one of the major crypto assets exchanges based in the United States. The bank claimed that Kraken is another platform involved with a number of suspected cases.
TBS is basically criticizing such exchanges for not taking steps following the frauds. Moreover, the bank claimed that such exchanges are not taking any measures following the scenario.
TBS’s motive behind imposing a ban on cryptos
A spokesperson from TBS bank made few comments on the bank’s plans to impose a ban on crypto assets. The person remarked that the ultimate aim of the bank is to protect its users from fraudulent activities. Moreover, the bank wants its clients to stay from platforms with high fraud rates.
Trustee Savings Bank is not the first
With the latest announcement, TBS bank has joined the growing list of United Kingdom financial institutions that bars individuals from crypto. Previously it was found that NatWest, a United Kingdom-based bank, had issued an alert. The alert consisted of a report receiving a record count of complaints related to crypto frauds in Q1 2021. Moreover, in April, the banking service provider passed an anti-crypto notice for its clients.
On the other hand, the UK regulators also remained against cryptocurrency. Over the last few weeks, several scrutiny reports came from the regulators.