DSP Bank, the UK’s private bank, may begin banning its more than 5 million customers from using their funds to buy cryptocurrencies in finance and cryptocurrencies. The reason, according to the newspaper The Sunday Times, The company has been receiving thousands of complaints from customers claiming to be embroiled in scams.
According to the report, the concerns of the DSP are that there may be fraudsters in companies that trade in cryptocurrencies, which benefit from weak configurations that allow access to funds and theft, i.e. without accounts, for example, without two-factor verification (2FA).
In particular, on Sunday, DSP Bank was concerned about the finances of one of the world’s largest cryptocurrency transactions recorded in the Cayman Islands.
The bank, which was preferred by the site to comment, said 849 of its depositors lost money to fraudsters with accounting accounts from March 15 to April 15. When questioned about the exchange in this case, the bank pointed out that it did not receive any returns.
Last month, a similar lawsuit was filed by London-based digital banking Starling Bank, which barred remittances to cryptocurrency companies. To Telegraph, The company revealed that it was concerned about the high level of suspicion of financial crimes by the cryptocurrency sector.
At the time, the newspaper reported that other banks were taking similar steps. In addition to Starling Bank customers, Barclays and Monso customers are among those who have been prevented from converting money into cryptocurrency transactions, at least temporarily.
Cryptocurrencies in the UK
Tensions are running high among UK regulators not only over the rise in cryptocurrency-related crimes, but also over the growth of investors in the sector.
Earlier this year, the Financial Authority (FCA), the UK authority regulating the financial sector, warned consumers investing in cryptocurrencies to be prepared to lose their money.
In March, the UK Advertising Standards Commission (ASA) banned the print campaign run by the Coinfloor exchange, which is spread across the London Underground. According to the ASA, the marketing campaign is targeting retirees who do not adequately understand the risk of investors in cryptocurrencies.
Henry Blackwell is a contributor at Mediarunsearch.co.uk, covering a wide range of topics including news, politics, business, technology, sport, entertainment, and lifestyle. He focuses on delivering clear, balanced reporting and useful information that helps readers stay informed about current events and emerging developments. His work highlights stories that matter to everyday audiences, with an emphasis on accuracy, relevance, and accessible journalism.