TL;DR Breakdown
• TSB Bank wants to ban crypto for scams generated on the Binance platform.
• TSB Bank joins regulators in the UK and China.
Retail bank group TSB creates a plan that will ban cryptocurrency trading to its users. This occurs because of the fear that virtual currencies are part of a fraudulent scheme. The TSB bank is singled out as the latest UK regulator to crack down on cryptocurrencies and financial crime.
Earlier, entities such as Starling Bank, Monzo Bank, and Barclays Plc have blocked transactions with cryptocurrencies. These measures are applied mainly for platforms such as Binance that dominate the world.
Authorities in the UK have been unhappy with the crypto market and are therefore trying to regulate it. This is besides the regulations that China has imposed against decentralized currencies. Although the authorities have reasons to take these measures, they are seen to have gone too far.
TSB Bank to ban crypto ASAP
The UK retail banking authority has plans to ban crypto in the shortest time possible. This is because the entity wants to activate the blocking plan quickly to avoid cyber scams. Not surprisingly, cryptocurrency scams have reached the UK limits in the aftermath of the pandemic.
A few hours ago, in San Antonio, Texas, a financial services company was accused of fraud. Just as these cyber thefts occur in the United States, some regions of Europe can also be exposed. The bank also wants to ban crypto to prevent money laundering.
The bank intuits that 3 out of 10 transactions with cryptocurrencies have ended in fraud or support crime. This is compared to the 5,500 secure fiduciary transactions that takes place via the bank’s platform.
TSB Bank refuses Binance transactions
In the announcement, TSB Bank states that two-thirds of virtual fraud occurs on the Binance platform. To ban crypto, the bank clings sees the platform as insecure, full of scammers, and believes it does not guarantee its customers. According to TSB Bank, over 849 clients on their platform lost money using Binance’s fiat-crypto exchange system.
The crypto ban plan by TSB Bank is in process and may be approved soon. The bank therefore joins a long list of regulators in the UK who refuse to accept crypto transactions.
Many individuals are still in support of cryptocurrencies even though this crypto ban project is present. While the reports make the market more inaccessible, this will not discourage new investors. For every bank that blocks cryptocurrencies, new methods are expected to emerge to enable investors trade without hindrance.
