In the coming days, more than five million retail customers of the UK bank TSB will lose the ability to buy cryptocurrency on Binance and Kraken, according to The Times.
The financial institution attributed the decision to concerns about rampant fraud on the named platforms and weak security measures. Binance is of particular concern for the bank.
According to TSB, between 15 March and 15 April 2021, 849 customers reported losses on their Binance accounts due to fraud.
The bank noted that scammers pose as online investment advisers and persuade victims to hand over their debit card details.
“We are seeing a sharp rise in fraud as cryptocurrency exchanges are teeming with individuals who steal huge sums and profit from growing interest in this type of investment,” said a TSB spokesperson.
Binance and Kraken rejected the accusations. A representative of the Cayman Islands-registered Asian platform said that “Binance takes its responsibility to protect users from fraud very seriously”.
“When we become aware of such claims, we act immediately and have excellent experience working with law enforcement authorities,” he added.
Kraken’s Chief Compliance Officer Steven Christie noted that the exchange responded to more than 1,000 law enforcement requests in 2020 alone.
In the UK, the Financial Conduct Authority counted 2.3 million cryptocurrency investors in cryptocurrencies, up from 1.9 million a year earlier.
Subscribe to ForkLog news on VK.