Tech
Challenger Bank Kroo Bans Crypto Transactions, Warning of ‘Scams’
London-based challenger bank Kroo bans customers from making crypto transactions, saying cryptocurrencies are “increasingly used by scammers as a way to scam people.”
Kroo is following in the footsteps of other challenger banks, Starling Bank and Chase UK, which have issued bans on cryptocurrencies.
In an update to its Terms and Conditions, Kroo said:
“To help you keep your account and your money safe, we are introducing some restrictions on the type of payments you can make or receive with your Kroo account.
“As of May 30, 2024, we will no longer support bank transfers or card transactions associated with cryptocurrencies.
“We made this decision because cryptocurrencies are increasingly being used by scammers as a way to scam people.”
Kroo said it will reject payments made to cryptocurrency asset providers and will not process bank transfers from senders related to cryptocurrency assets.
Banks have warned of a sharp rise in online fraud, with Lloyds last year saying cryptocurrency scams were up 23% in 2023 compared to the same period last year.
The Financial Conduct Authority (FCA) has warned of the danger of investing in cryptocurrencies and the risk of scams.
It won around 150,000 customers in the first 12 months after the current account was launched.
Last year it raised £2m from investors in a crowdfunding capital raising, which put the bank at a pre-money valuation of £120m.