Starting May 30, UK digital bank Kroo will ban its customers from making cryptocurrency transactions.
Kroo, a London-based digital bank, announced that it will no longer allow its customers to conduct cryptocurrency transactions. This decision comes in response to the increasing number of online fraud and cryptocurrency-related scams.
According to the bank terms and conditionsKroo will restrict the account if “you use your account to purchase or trade cryptocurrencies or if you receive credits in your account that arise from trading or trading cryptocurrencies. If we detect such activity, we will not process the payments in question, and if you continue to conduct such transactions, we may We close your account.
Kroo can also freeze accounts if it suspects the use of cryptocurrencies.
“As of May 30, 2024, we will no longer support bank transfers or card transactions linked to cryptocurrencies,” the bank wrote.
Kroo is a challenger bank that aims to compete for business against large, established banks. It follows other UK challenger banks, such as Starling Bank and Chase UK, in Issue ban On cryptocurrencies.
Bank warnings against cryptocurrency fraud
Many global banks have criticized cryptocurrencies as less secure than perceived. Some argue that cryptocurrencies are not as anonymous as many people think.
In February, the Russian Central Bank revealed that nearly half of financial fraud schemes within the country in 2023 used cryptocurrencies and foreign currencies for payments.
In the United States, Federal Reserve authorities have stressed the potential for fraud and scams if banks adopt cryptocurrencies and adopt central bank digital currencies (CBDCs).
