UK digital bank Kroo will ban its customers from trading cryptocurrencies from May 30th.
London-based digital bank Kroo has announced that it will no longer allow its customers to trade cryptocurrencies, a decision that comes in response to a rise in online fraud and scams related to cryptocurrencies.
According to the bank's terms and conditions, Kroo will restrict your account if “you use your account to purchase or trade cryptocurrency or receive credits to your account resulting from cryptocurrency trades or transactions. If we detect such activity, we will not process the related payments and may close your account if you continue to make such transactions.”
Kroo can also freeze accounts if it suspects cryptocurrency use.
“After May 30, 2024, we will no longer support bank transfers or card transactions related to cryptocurrencies,” the bank wrote.
Kroo is a challenger bank looking to compete with the larger established banks. The company follows other UK challenger banks such as Starling Bank and Chase UK in banning cryptocurrencies.
Banks warn of cryptocurrency scams
Many global banks have criticized cryptocurrencies for not being as secure as they are perceived to be, with some arguing that they are not as anonymous as many people think.
In February, the Russian Central Bank revealed that cryptocurrencies and foreign currencies were used for payments in nearly half of the financial fraud cases that occurred in the country in 2023.
In the United States, Federal Reserve officials have stressed that fraud and scams could arise if banks were to accept cryptocurrencies and adopt central bank digital currencies (CBDCs).
