Kroo, a London-based challenger bank, has implemented a ban on crypto transactions to safeguard its customers' accounts and funds, effective from May 30, 2024. The updated terms and conditions state that the bank will no longer process bank transfers or card payments associated with crypto asset providers. Additionally, Kroo has announced plans to freeze or restrict accounts involved in crypto purchases or trading, with potential account closures for persistent offenders.
This decision comes amidst a surge in crypto-related online scams and frauds, echoing concerns raised by other UK banks such as Lloyds Bank, which reported a 23% increase in crypto scams targeting younger investors last year. Kroo joins other challenger banks like Starling Bank and Chase UK in prohibiting crypto-related transactions. Starling Bank implemented a ban on crypto transfers in 2022, citing high-risk crypto activity, while Chase UK restricted customer access to crypto due to concerns about its illicit use.
NatWest Bank in the UK has also imposed limitations on crypto spending for its customers, allowing only up to £1000 worth of crypto payments per day and £5000 in 30 days. Regulatory challenges, alongside fraud concerns, may have contributed to Kroo's decision to impose an outright ban on crypto transactions. The UK's Financial Conduct Authority (FCA) has raised questions about crypto's trustworthiness through marketing transparency regulations.
David Janczewski, CEO of CoinCover, a Blockchain protection company, suggests that instead of outright bans, banks could enhance safety measures to prevent theft and loss associated with crypto transactions, thereby addressing concerns at their source.
May 2024, Cryptoniteuae