According to reports, over 5 million customers in the United Kingdom would be denied access to digital currencies. According to TSB Bank, scammers are increasingly being permitted to set up their e-wallets on digital currency platforms. The bank singled out Binance and Kraken, claiming that they have not protected users from being cheated.
According to a report in The Times, TSB intends to enforce the digital currency prohibition soon. The daily stated in its story, which cited persons with knowledge of the situation, that TSB has continued to receive complaints from clients regarding fraud involving digital currency sites.
The judgment will prevent TSB Bank from transmitting its funds to digital currency trading platforms directly to over 5,4 million customers.
The bank identified Binance as one of the most important platforms. The Zhao-led exchange of Changpeng has failed to protect its consumers, according to the TSB.
For example, the Bank has received 849 notifications from its customer during one month from 15 March to 15 April of this year that it has lost money to the Binance scammers. It tried to get in touch with the exchange to settle the problems, but Binance would not cooperate.
Binance refused any claims and said that the bank never notified it. An exchange agent said,
“Binance is very serious about its responsibility to protect users from scams. When we are made aware of these claims, we immediately take action and have an excellent record of working with law enforcement agencies.”
Kraken was also identified as another platform with which TSB had major problems. In addition, the US exchange refuted the assertions. Steven Christie, chief of compliance at the exchange worldwide,
“We categorically deny the allegation that Kraken does not respond to calls for assistance on incidents of fraud. Kraken responded to well over 1,000 different requests from law enforcement agencies in 2020 alone. Kraken operates in full compliance with law enforcement agencies.”
Binance is no stranger to law enforcement, especially in the UK. The exchange is being investigated by the UK market authority for its tokens Coinbase and Tesla. The BaFin, the German market regulator, also took a look at these tokens, which are believed to be an infringement of German securities rules. Binance is now under investigation in the USA on allegations of money laundering and tax violations by the Commodity Future Trading Commission (CFTC), the IRS, and the Department of Justice.