- Kroo Bank announces ban on crypto transactions, citing increasing cases of crypto scams.
- From May 30, 2024, Kroo Bank will not support any cryptocurrency-related transactions.
- The FCA cautioned banks against the increasing threats following Lloyd’s report, which highlighted a 23% hike in crypto scams.
Kroo Bank, a London-based challenger bank, has banned its clients from engaging in crypto transactions, citing the growing scams and hacks . The bank stated that cryptocurrencies are “increasingly being used by fraudsters as a way to scam people.”
In its Terms and Conditions, Kroo Bank recently updated its amendments, asserting that it will no longer support crypto transactions beginning May 30, 2024. The statement read:
“To help keep your account and money safe, we are introducing some restrictions to the type of payments you can make or receive with your Kroo account. From 30 May 2024, we will no longer support bank transfers or card transactions associated with cryptocurrencies.”
Explaining the driving force behind Kroo Bank’s strategic decision, the platform stated, “We have made this decision because cryptocurrencies are increasingly being used by fraudsters as a way to scam people.” Kroo Bank is reportedly following in the footsteps of other challenger banks like Starling Bank and Chase UK, which have already implemented restrictions on crypto transactions.
In September 2023, JPMorgan’s Chase UK announced the ban on crypto transactions to avoid any possible threats. A spokesperson explained:
“We’ve seen an increase in the number of crypto scams targeting UK consumers, so we have taken the decision to prevent the purchase of crypto assets on a Chase debit card or by transferring money to a crypto site from a Chase account.”
By imposing a ban on crypto transactions, Kroo Bank would decline crypto payments to asset providers. In addition, the bank stated that it will not encourage any crypto-related activities within the platform.
Kroo Bank’s strategic move comes on the heels of the Financial Conduct Authority’s (FCA) caution against the inherent risks in crypto trading. While Lloyd’s report showcased a 23% hike in crypto scams last year, the FCA warns banks against the potential dangers.
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