British bank TSB forbade customers from buying cryptocurrencies on Binance

In the next few days, more than 5 million customers of TSB retail bank in the UK will be deprived of the opportunity to buy cryptocurrency on Binance and Kraken exchanges. The financial institution attributed the decision to concerns about the abundance of fraudsters on these platforms and weak security measures in the exchanges themselves, including Binance. The bank is particularly concerned about the unregulated Binance exchange.

According to TSB, between March 15 and April 15, 2021, 849 depositors at the bank reported losing money in their Binance accounts due to fraudulent activity. The bank noted that the scammers posed as online investment advisers and convinced victims to hand over their debit card details.

"We are witnessing a spike in fraud as cryptocurrency exchanges are rife with figures who are stealing huge sums and capitalizing on the growing interest in this type of investment," a TSB representative said.

Binance and Kraken denied the allegations. The representative of the Cayman Islands-registered Binance casino said that "Binance takes its responsibility to protect users from fraud very seriously."

"When we become aware of such claims, we take action immediately and have an excellent track record of working with law enforcement," he added.

Kraken's head of legal compliance, Stephen Christie, noted that the exchange has responded to more than 1,000 related law enforcement inquiries for 2020.

24.06.21

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