There is no official or federal ban on crypto trading in the United Kingdom. However, a good number of private banks and financial institutions have taken the initiative to bar their account holders from sending money to cryptocurrency platforms. The latest member to join the club is TSB Bank. TSB Bank is a subsidiary of the Sabadell Company and operates several retail and commercial banking services.
According to the United Kingdom media agency Telegraph, the TSB Banking Group Plc. is in the process of introducing a crypto ban. Once the new regulations are in place, more than 5.4 million account holders of the bank won’t be able to buy any cryptocurrencies, including Bitcoin with online banking or wiring services. According to the Bank officials, the ban is the result of increasing numbers of fraud complaints during crypto fund transfers.
Major Crypto Exchange Platforms are Linked to the Increasing Number of Crypto Scams in the United Kingdom
The TSB bank officials claimed in a new report that about one in 5,500 transactions is made for cryptocurrencies. This means that a total of 12.5% transaction volume of the bank comprises facilitating crypto trading. However, the bank further added that the number of complaints received by this group to be targeted by scammers and con artists is increasing. An alarming number of these scams have been linked to a major crypto exchange called Binance.
Another huge contributor in promoting crypto-related scams and fraud schemes is the United States-based crypto exchange platform Kraken. The bank authorities also criticize the exchange platforms for not taking action or introducing better policies to deal with the crypto defaulters and cybercriminal entities.
More Banks in the United Kingdom are Endorsing the Idea of Imposing a Ban on Crypto Trading Facilities
TSB Bank is the latest successor in the long line of UK banks to introduce a crypto ban for their account holders. The NatWest bank issued a warning against crypto-related crimes in May. In April, the Natwest authorities imposed a complete ban on crypto trading altogether. More banks to follow suit include HSBC, Starling, and Barclays.
Since then, only Starling has taken back its crypto restrictions. Andrew Bailey, Governor of the Bank of England, issued a red alert on the matter of destructive tendencies of cryptocurrencies. In a press conference held in May, he cautioned that crypto investors are at risk of losing all of their investments. In the same fashion, the Financial Conduct Authority of the United Kingdom reciprocated these admonitions.