UK Digital Bank Blocks Clients From Performing Crypto Transactions

The London-based digital bank Kroo has barred its clients from engaging in cryptocurrency transactions, joining other U.K.-based banks in this decision. The bank cites the increasing cases of online fraud incidents involving cryptocurrencies as the reason for this move.

Kroo to Decline Cryptocurrency-Related Bank Transfer Requests

London-based digital bank Kroo has barred its customers from performing cryptocurrency transactions. The bank attributes this decision to the increased association of crypto with scams. Kroo joins fellow banks Starling Bank and Chase UK in blocking clients from engaging in crypto transactions.

According to the bank’s updated terms and conditions, starting from May 30, 2024, Kroo will decline bank transfer requests or card transactions associated with cryptocurrencies.

“[We can freeze or 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 digital bank explained.

The digital bank also warned that it will take similar action if any other valid reason applies. Kroo also urged clients impacted by these new conditions to instruct payees making direct debits to their accounts to stop such payments.

Although Kroo does not disclose why it is ending support for cryptocurrency transactions, a report in Paypers suggests that the decision aligns with a trend among banks attempting to address crypto-related fraud, which rose by 23% in 2023.

What are your thoughts on this story? Share your opinions in the comments section below. #Write2Earn