According to recent reports, TSB is going to take actions that will prevent its clients from buying crypto from Binance and Kraken because of the abysmal safety standards of the crypto exchanges.
Many banks are making it impossible to buy crypto primarily because of fraud and security concerns. TSB is deeply concerned by the high rate of fraud when it comes to digital asset exchanges working in the UK.
Trustee Savings Bank may be disassociating itself from Crypto exchanges because of safety concerns
Prominent news outlet Times report that the move may come because of the high fraud-related incident linked with Kraken and Binance. The below-par safety standards of crypto exchanges have aided scammers.
Reports concurred that TSB noted at the very least 849 fraud-related complaints within March and April by the crypto exchange users. TSB reported that any attempt made to discuss the situation ended up fruitless. But, the said crypto exchange states that it did not receive any feedback from TSB’s team.
A spokesperson from Binance without directly hinting to the Bank reiterated that the crypto exchange is committed to providing the highest standards of security to its users and assured that the company had prioritized the security issue:
According to the spokesperson, Binance is very serious too when it comes to the security of its users, and whenever a complaint is registered, the company is first to react, and because of the quick action, the company has a good history of collaborating with the security agencies.
But when it came to Kraken, the company was more direct to address the concern and denied the allegation made by TSB:
Kraken’s spokesperson stated that the company had a request for more than 1000 requests from the security agencies last year, and the company complied with the agencies every time.
Investors made things much simpler for fraudsters in the United Kingdom
Issue linked with fraud is very sensitive for the banks since it triggers the bank’s protection program that refunds all the lost money if a customer is a victim of fraud. TSB has cautioned its customers of digital asset-related frauds.
At the moment, the bank did not release a statement related to the said crypto exchanges. Regardless, the regulator’s interest has been growing by the day when it comes to cryptocurrency. According to a survey, there has been a substantial increase in crypto investors compared to the previous year.
But, the Financial Conduct Authority also noted that there is a high amount of investors associated with crypto without even having much knowledge about the industry. Hence, it is a worrisome period for the security agencies since the stage is set for scammers to attack.