UK-based financial institution, TSB Banking Group Plc. It will soon ban more than 5.4 million customers from buying Bitcoin (BTC) and other cryptocurrencies.

According to a post from The Telegraph on Saturday, the bank’s impending ban on cryptocurrency is linked to alleged fraud in cryptocurrency transactions.

It is alleged that TSB received a large number of complaints from customers about fraud in cryptocurrency. In fact, the Bank of England states that about 12.5% ​​of cryptocurrency payments involve 1 in 5,500 non-virtual currency transactions on 1 in 5,500 transfers.

Cryptocurrency giant Binance is said to be linked to a growing number of bank customers’ complaints about cryptocurrency fraud. Two-thirds of the suspected cases are linked to Binance, with 849 cases occurring between mid-March and mid-April.

As previously reported by Cointelegraph, UK bank NatWest announced the scam in May after receiving a record number of complaints in the first quarter. Earlier in April, the bank issued crypto alerts to clients and customers to keep them away from cryptocurrency.

In addition to Binance, TSB Bank has identified US-based exchange service Kraken as another platform linked to a large number of alleged fraud cases. The British bank has also criticized cryptocurrency exchanges for not responding to customer complaints about fraud.

Commenting on the plans to ban cryptocurrency, a TSB spokesperson noted that the bank is committed to protecting customers from platforms with “very high levels of fraud.”

TSB Bank joins a growing list of UK financial institutions that have banned customers from using cryptocurrency. Aside from NatWest, other British banks such as Barclays and Starling have banned clients from placing funds on cryptocurrency exchanges.

On this topic: Britain’s Starling Bank will resume crypto deposits at the end of June

Earlier in June, Starling announced that it would resume allowing customers to deposit funds on cryptocurrency exchanges from Wednesday onwards.

Earlier this year, HSBC began preventing customers from withdrawing cryptocurrency exchanges to their bank accounts.

Although there is no crypto ban in the UK, regulators are still critical of cryptocurrency. In May, Bank of England Governor Andrew Bailey warned that crypto investors risk losing all of their money.

Bailey’s comments reflect a similar warning to the Free Syrian Army in January.

Source: CoinTelegraph