Banks ban purchasing crypto from Kraken and Binance

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In that the UK banks are tightening their grip on consumer involvement with cryptocurrencies, mentioning particular concerns related to safety and the potential for fraud.

TSB Bank will prohibit customers from purchasing crypto with money through Binance and Kraken. Obviously, the minimal safety criteria of those platforms facilitate the actions of scammers, particularly in establishing electronic wallets. The reason given was worries about excessive fraud rates related to cryptocurrency exchanges operating in the country.

According into the report, TSB obtained at 849 fraud complaints involving March 15 and April 15 by Binance users. The bank said that all attempts to contact Binance were ineffective. However, Binance said it hasn’t received any messages in the bank’s security group.

Without mentioning TSB right, a spokesperson for Binance reiterated the market’s commitment to working for the safety of its clients, ensuring that the provider’s policy takes precedence over the matter:

“Binance takes its responsibility to protect users from scams very seriously. When we became aware of these claims, we immediately took action and have an excellent track record of working with law enforcement agencies.”

But Kraken is a lot more outspoken with TSB. Steven Christie, global head of compliance at Kraken, denied that the TSB allegations, though he didn’t mention that the stance they would take on this new potential fraud epidemic:

“We categorically deny the allegation that Kraken did not respond to calls for assistance regarding fraud incidents. Kraken has responded well to over 1,000 different requests in 2020 alone. We are fully compliant with the law.”

Recently, a poll from the UK’s financial regulator disclosed that the amount of crypto investors has increased year-on-year, as has the average value of merchants. .

This is a worrying development for law enforcement and crime prevention agencies, as it provides a platform for fraudsters and criminals to benefit from a larger pool of possible victims who are less fortunate. Understanding than in prior years. Not only Binance and Kraken have been in trouble, just 3 months ago, FCA got in the way and Bybit needed to stop operating in the united kingdom.