Kroo, a digital bank based in London, has joined other banks in the UK by prohibiting its customers from engaging in cryptocurrency transactions. The bank’s decision is motivated by the increasing prevalence of online fraud incidents associated with cryptocurrencies.
Kroo will now reject requests for bank transfers or card transactions related to cryptocurrencies, according to its updated terms and conditions, effective from May 30, 2024. The bank explained that if customers use their accounts for cryptocurrency purchases or trading, or if they receive credits from cryptocurrency transactions, their accounts may be frozen or restricted. If such activity persists, the bank may even close the account.
Additionally, Kroo cautioned that it would take similar actions for any other valid reason. The bank advised customers affected by these new conditions to inform payees making direct debits to their accounts to cease such payments.
While Kroo did not provide specific reasons for discontinuing support for cryptocurrency transactions, a report by Paypers suggests that this decision aligns with a broader trend among banks seeking to combat the rise of cryptocurrency-related fraud, which increased by 23% in 2023.
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