A London-based digital bank, Kroo, will stop customers from doing cryptocurrency transactions starting May 30.
Kroo Bank’s response to rising online fraud linked to crypto is a ban on customer accounts for crypto trading or related credits, possibly resulting in restrictions or closures.
Since May 30, Kroo has not supported bank transfers or card transactions for cryptocurrencies. This follows other UK challenger banks like Starling Bank and Chase UK, which also ban crypto.
In Russia, the Central Bank reported that nearly half of financial fraud cases in 2023 involved cryptocurrency payments. Similarly, US Federal Reserve authorities have warned about fraud risks associated with embracing crypto and Central Bank Digital Currencies (CBDCs).
Kroo, aiming to compete with big banks, is aligning with others in the industry to protect customers from crypto-related risks.
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