UK Bank to ban customers from performing crypto transactions starting May 30

Starting May 30, UK digital bank Kroo will ban its customers from making cryptocurrency transactions.

Kroo, a London-based digital bank, has announced that it will no longer allow its customers to make crypto transactions. This decision was made in response to the increasing number of crypto-related online fraud cases and scams.

According to the bank’s terms and conditions, Kroo will restrict an account “if you use your account to purchase or trade cryptocurrency or receive credits to your account resulting from cryptocurrency trading or transactions.” If we detect such activity, we will not process the relevant payments and if you persistently engage in such activity, we may close your account.”

Kroo can also freeze accounts if it suspects crypto use.

“Starting May 30, 2024, we will no longer support bank transfers or card transactions associated with cryptocurrencies,” the bank wrote.

Kroo is an ambitious bank that aims to compete in business against large and well-established banks. It follows other UK rival banks such as Starling Bank and Chase UK in imposing a ban on cryptocurrencies.

Bank warnings against crypto scams

Many global banks have criticized cryptocurrency as less secure than it is perceived to be. Some argue that cryptocurrency is not as anonymous as many people think.

In February, the Central Bank of Russia announced that in 2023, almost half of financial fraud schemes in the country used cryptocurrencies and foreign currencies for payments.

In the United States, Federal Reserve officials have highlighted the potential for fraud and scams if banks adopt crypto and Central Bank Digital Currencies (CBDCs).