Saha Swatilakha
London-based challenger bank Kroo has announced a ban on all cryptocurrency related transactions for its customers, effective Thursday.
The bank’s updated terms and conditions specify that this measure aims to “help keep user accounts and money safe.”
Kroo’s new policy states that it will stop processing bank transfers or card payments associated with crypto asset providers. Additionally, the bank will freeze or restrict accounts used to purchase or trade cryptocurrencies and potentially block accounts that receive funds from crypto transactions. “If we detect such activity, we will not process the payments involved, and if you persistently make such transactions, we may close your account,” the bank warned.
This move by Kroo comes amid a significant rise in crypto-related online scams and fraud. Recent reports indicate that crypto scams are increasingly targeting younger investors, leading to substantial financial losses. Lloyds Bank recently highlighted a 23% surge in crypto scams over the past year, with victims losing an average of £10,741, the highest among all types of scams.
Kroo is not alone in its harsh stance against cryptocurrency transactions. Other UK-based challenger banks, such as Starling Bank and Chase UK, have previously implemented similar measures. Starling Bank banned crypto transfers in 2022, citing the high-risk nature of crypto activities. In October last year, Chase UK, the British retail arm of JPMorgan, restricted customers’ access to cryptocurrencies due to concerns over their illicit use.
NatWest Bank has also adopted a cautious approach toward crypto spending. The bank has imposed limits on crypto transactions, allowing customers to make up to £1,000 worth of crypto payments per day and a maximum of £5,000 over a 30-day period.
As crypto-related scams and fraud continue to rise, banks are increasingly taking protective measures to safeguard their customers’ funds. This trend reflects a broader industry move toward more stringent controls and regulations around cryptocurrency usage.
