Starting May 30, UK digital bank Kroo will ban its customers from conducting crypto transactions.
Kroo, a London-based digital bank, has announced that it will no longer allow its customers to conduct crypto transactions. This decision is in response to the increasing number of online fraud cases and scams associated with crypto.
According to the bank’s terms and conditions, Kroo will restrict “your” account if “you use your account to purchase or trade in cryptocurrency or you receive credits to your account which arise from cryptocurrency trading or transactions.”
“If we detect such activity we will not process the payments involved, and if you persistently make such transactions we may close your account,” the bank added.
Kroo added that it can also freeze accounts if they suspect crypto use.
“From 30 May 2024, we will no longer support bank transfers or card transactions associated with cryptocurrencies,” the bank wrote.
Kroo is a challenger bank aiming to compete for business against large, well-established banks. It is following other U.K. challenger banks, such as Starling Bank and Chase UK, in issuing bans on cryptocurrencies.
Bank Warnings Against Crypto Fraud
Many global banks have criticized crypto as being less safe than perceived. Some argue that crypto is not as anonymous as many people think.
In February, the Central Bank of Russia disclosed that nearly half of the financial fraud schemes within the country in 2023 used cryptocurrency and foreign currencies for payments.
In the United States, Federal Reserve authorities have stressed the potential of fraud and scams if banks embrace crypto and adopt Central Bank Digital Currencies (CBDCs).
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