Kroo, a London-based digital bank, will ban customers from conducting cryptocurrency transactions starting May 30, 2024. This move aims to curb the rising incidents of online fraud and scams linked to crypto.
Under Kroo’s new terms and conditions, accounts involved in crypto transactions will face restrictions or closure. The bank will also freeze accounts if they suspect crypto use.
Following in the footsteps of other U.K. challenger banks like Starling Bank and Chase UK, Kroo’s decision is part of a larger trend. Many global banks have warned about the risks of cryptocurrency, noting its potential for fraud. For instance, the Central Bank of Russia reported that nearly half of the financial fraud schemes in Russia in 2023 involved crypto.
This strategic move underscores the ongoing concerns about crypto’s safety and aims to protect customers from potential fraud.
