British digital bank Kroo will ban its customers from trading in cryptocurrencies from May 30.
London-based digital bank Kroo has announced that it will no longer allow customers to conduct cryptocurrency transactions. This decision follows the rise in online fraud cases and scams related to cryptocurrency.
According to the bank’s terms and conditions, Kroo “will restrict your account if you use your account to purchase or trade cryptocurrencies or receive credits to your account due to trading or trading cryptocurrencies. If such activity is detected we will not process the relevant payment and may close your account if you continue to engage in such transactions.”
Kroo may also freeze accounts if cryptocurrency use is suspected.
“From May 30, 2024, we will no longer support bank transfers or card transactions involving cryptocurrencies,” the bank said.
Kroo is a challenger bank that aims to compete for business with large, well-established banks. It is following other UK challenger banks such as Starling Bank and Chase UK in announcing a ban on cryptocurrencies.
Banks warn against cryptocurrency scams
Many global banks have criticized cryptocurrencies as being less secure than expected. Some people argue that cryptocurrencies are not as anonymous as many people think.
In February, the Central Bank of Russia said that nearly half of financial fraud schemes in Russia in 2023 used cryptocurrencies and foreign currencies as payment methods.
In the United States, Federal Reserve officials have emphasized the potential for fraud and fraud if banks embrace cryptocurrencies and adopt central bank digital currencies (CBDCs).