Kroo, the digital bank based in London, has made the decision to prohibit its clients from engaging in cryptocurrency transactions. This move follows a similar stance taken by other banks in the UK. The reason cited by Kroo for this action is the increasing number of online fraud incidents associated with cryptocurrencies.
Kroo will now decline any requests for bank transfers or card transactions linked to cryptocurrencies, according to the updated terms and conditions set by the bank. This change will be effective from May 30, 2024. Starling Bank and Chase UK are two other banks that have already taken steps to block their clients from participating in crypto transactions.
The digital bank explained that it reserves the right to freeze or restrict accounts if they are used for purchasing or trading cryptocurrencies, or if credits to the account are derived from crypto trading or transactions. Payments connected to such activities will not be processed, and in cases of persistent transactions, the account may be closed.
Kroo also stated that it would take similar action if there are any other valid reasons to do so. Clients affected by these new conditions are advised to inform payees making direct debits to their accounts to cease such payments.
Although Kroo has not disclosed the specific reasons for discontinuing support for cryptocurrency transactions, a report from Paypers suggests that this decision aligns with a growing trend among banks aiming to combat the increase in crypto-related fraud, which saw a 23% rise in 2023.
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