Starting May 30, 2024, Kroo, a digital bank based in London, will prohibit its customers from conducting cryptocurrency transactions. This decision is part of Kroo’s efforts to combat the rising number of online fraud cases and scams linked to cryptocurrency.

New Terms and Conditions

According to Kroo’s updated terms and conditions, the bank will restrict any account engaged in purchasing, trading, or receiving credits from cryptocurrency transactions. If such activities are detected, Kroo will refuse to process the payments involved. Persistent attempts to conduct crypto transactions may even result in account closure. Additionally, Kroo reserves the right to freeze accounts if they suspect any use of cryptocurrency.

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

Following in Other Banks’ Footsteps

Kroo is a challenger bank, aiming to compete with larger, well-established financial institutions. By banning crypto transactions, Kroo joins other U.K. challenger banks like Starling Bank and Chase UK, which have already imposed similar restrictions.

Bank Warnings Against Crypto Fraud

Many global banks have criticized cryptocurrencies, citing safety concerns. They argue that crypto is not as anonymous or secure as many believe.

In February, the Central Bank of Russia reported that nearly half of the country’s financial fraud schemes in 2023 involved cryptocurrencies or foreign currencies. Similarly, in the United States, Federal Reserve authorities have highlighted the potential for fraud and scams if banks adopt cryptocurrencies and Central Bank Digital Currencies (CBDCs).