A UK-based bank plans to prohibit crypto investments because of online fraudulent activities

A UK-based bank plans to prohibit crypto investments because of online fraudulent activities

A financial establishment in the U.K. known as Bank TSB is likely to be the most recent bank to stop traders from engaging in crypto transactions. The bank is making moves to stop more than five million traders from purchasing crypto, most especially BTC.

Based on the weekend’s broadcast by The Telegraph, this looming prohibition resulted from an apparent outbreak of online crimes in the crypto industry.

The bank has encountered a plenitude of revolts from traders in the industry on the issue of crypto crimes. Indisputably, the bank noted that almost 12.5% of revenues to the industry involve trading as against one in five thousand five hundred for transactions with legal currency.

Binance has experienced an increased level of reports from traders regarding fraudulent activities. More than half of supposed crimes were associated with the Binance, having about eight hundred and forty-nine occurrences within one month.

NatWest, a United Kingdom bank, gave a crypto fraud warning last month after recording high complaints in the first quarter of 2021. Two months ago, it had warned traders to avoid crypto-related businesses.

Also, Kraken, a US exchange service, has experienced substantial fraudulent activities. The United Kingdom bank berated crypto platforms for not reacting to traders’ worries. A TSB Bank representative noted that the bank has the responsibility to safeguard its clients from exchanges with a high crime rate.

TSB joins the record of financial institutions in the United Kingdom that prohibited their clients from engaging in crypto businesses. NatWest and other banks in Britain have made the same move. But earlier this month, Starling disclosed its plan to start permitting its clients to engage in crypto transactions in two days time. Also, earlier this year, HSBC started prohibiting traders from transferring cryptocurrencies to their bank accounts.


Although crypto has not been prohibited in the United Kingdom, regulators are still critical of the token. Last month, Andrew Bailey, the governor of BoE, noted that there is a high risk of crypto traders losing their entire wealth. His statements are similar to the warning that the Financial Conduct Authority of the United Kingdom gave five months ago.


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