TSB Stops Customers Buying Cryptocurrency

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TSB, one of the UK’s largest banks has placed a blanket ban, to stop its 5+ million customer from buying cryptocurrency.

As a TSB customer, I was somewhat shocked to find out that they had implemented a blanket ban on being able to transfer money from my bank account to a cryptocurrency exchange (in this case, Coinbase).

And after attempting to transfer some money over on Saturday 23rd October 2021, I received this text from TSB and also had a similar message appear on my internet banking dashboard.

Upon doing some research following this message, I found out that TSB had released a statement in June 2021 that they would be implementing this ban but as far as I am aware, they didn’t notify their customers directly.

tsb crypto ban message

The reason for this blanket ban? It is apparently to cut down on the “excessively high” levels of fraud which is reportedly related to popular exchanges Binance and Kraken, whom according to TSB “hardly ever” respond to allegations of customer fraud, a claim of which both platforms have denied.

Statement taken from the TSB Fraud Prevention Centre

This means that TSB has joined other banks such as Starling, Monzo and reportedly Barclays, who have placed restrictions on transfers to crypto exchanges, with HSBC also suspending transfers to Binance.

Now I have to say, as both a TSB customer and a buyer of crypto currency, that I am very disappointed in this move and while there may be some truth in their claims around higher levels of fraud with certain exchanges, banning transfer to ALL exchanges is a step too far in my opinion.

This is because TSB is effectively telling us where we can and can’t send OUR money and I personally don’t like this!

I think this will lead to many people leaving these banks and moving to more crypto friendly options and while I do understand limiting or suspending transfers to certain exchanges where cases of fraud are high, a blanket ban like the one from TSB is just poor form.

So what can we do about it? The simple answer is that we need to find a more crypto friendly bank that allows transfers to exchanges, fortunately, the guys over at the Crypto Buyers Club have created a list (subject to change) of where most UK banks currently stand when it comes to crypto.