By Shelly Melancon (Switzerland)
UK bank, TSB, has followed through with its plans to stop bank transfers to crypto exchanges in light of fraud reports by its customers. According to the bank, over 800 customers have complained about losing their money to crypto scams. Hence, the bank has barred transfers to popular cryptocurrency exchanges, Binance and Kraken. The bank had initially announced plans to do so at the beginning of this month.
FCA Survey Suggests Increase in Crypto Investors
Since the past year, the number of adult crypto holders have increased from 1.9 million to 2.3 million. The figures are results of surveys conducted by the UK Financial Conduct Authority (FCA) both in 2020 and 2021. The 2021 survey indicated that more people in the UK are now buying and holding cryptocurrencies, especially Bitcoin. Despite the recent dip that saw prices of cryptocurrencies collapse, the survey suggested that buying confidence has increased among crypto investors in the UK.
FCA’s survey also noted that crypto awareness among UK residents has increased to 78% this year as against the 73% crypto awareness recorded in 2020. In 2019, the figure stood at 45%. However, the FCA had warned against investing without knowledge because it observed that some respondents had only heard about cryptocurrencies and did not understand them. Only 71% of the respondents could actually define what cryptocurrencies were.
Also read:The FCA noted that some investors made massive gains on their crypto investments following the bull run in the first quarter of 2021. It further said that the cryptocurrency space was largely without regulations; thus, UK investors may have no regulator to report to if they lose their investment.
UK Banks Cite Security Concerns as They Ban Transfers to Exchanges
The TSB bank is concerned about security measures on cryptocurrency exchanges; hence its decision. The bank now believes Binance and Kraken are cesspools for crypto scams. It is reported that TSB had voiced its concerns on cryptocurrencies and fraud before its latest decision.
Ashley Hart, TSB’s Head of Fraud had strictly warned customers against investing in cryptocurrencies when approached to do so. She also highlighted the need for regulations on crypto and consumer protection. The ban will be effective in a few days. Experts are worried that this may affect the bank’s clientele.
Reports indicate that over £60 million had been lost since the cryptocurrency scams began causing other banks in the UK to also effect the same ban. Major banks in the UK such as Barclays barred transfers to crypto exchanges, citing fraud as the major reason. Crypto regulations have become a major talking point in most countries lately. Meanwhile, the UK government also plans to release a central bank digital currency.
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