Major UK Bank Bans Cryptocurrency Transactions

[TomPluz]

More this news here!

Kroo, a digital bank based in London, has announced its decision to prohibit customers from engaging in cryptocurrency transactions. This move is a response to the rising number of online fraud cases and scams linked to cryptocurrencies.

As per Kroo’s updated terms and conditions, the bank will impose restrictions on accounts involved in cryptocurrency activities. Specifically, if an account is used to purchase or trade cryptocurrencies, or if credits from cryptocurrency transactions are received, Kroo will block the payments. Persisting in such activities may lead to the closure of the account. Additionally, the bank reserves the right to freeze accounts if any suspicion of crypto-related use arises.

Effective from May 30, 2024, Kroo will no longer support bank transfers or card transactions associated with cryptocurrencies, as stated by the bank.

While I understand well the fact that the cryptocurrency industry has become riddled with scams and frauds, there is no strong basis why banks should not be working with it. Banks must provide the perimeters to make sure that scams and frauds can be avoided while doing business with people who are into cryptocurrency. I am sure this Kroo digital bank is not yet a big banking entity and they should have recognized the opportunity here to be ahead of their bigger counterparts and established a beachfront advantage. Alas, Kroo opted for a comfortable zone and soon they will realized they are already left behind. What is your message to Kroo, in case given a chance to express your own opinion on this matter?

[ABCbits]

The news state they're not major player in UK, so it's probably they don't have or don't want allocate resource to handle people who misuse cryptocurrency. Although looking at https://help.kroo.com/hc/en-gb/articles/9320269621649-Can-I-use-cryptocurrency, there's only about 1 week distance between their announcement and when this change applies. It's too short and i expect few of their customer will be surprised after finding their transaction blocked or account frozen.

[Freemind]

is a response to the rising number of online fraud cases

To protect you from something that may or may not happen, I prohibit you from doing so, also prohibiting you from using your money as you wish...

That is the "other" reading that came to mind after reading Kroo's statements.

If they were so concerned about fraud, the first thing they would do would be reject offshore accounts, among many other things. And that is valid for any bank in any country in the world. They try to prohibit what they cannot control, the freedom of citizens and the wealth that does not pass through their hands. That's all they care about.

[Zed0X]

They probably do not have a lot of customers that transact with cryptocurrencies and so they don't want to deal with the headache that may potentially arise from it. Maybe the benefits do not outweigh the possible costs from their analysis that's why they came to that conclusion. Anyway, just let them be. They might change their view in the future and issue a new policy favorable for crypto investors.

[robelneo]

Surprisingly, this bank was founded only in 2016 when Cryptocurrency was gaining a lot of attention, it's not a traditional old bank but prefers to be left out by ignoring the many benefits of accepting Cryptocurrency.
Only time can tell if they can hold on to their rules that they do not accept Cryptocurrency when every industry is accepting Cryptocurrency.
Some platforms prefer to go backward instead of going forward.

[Aanuoluwatofunmi]

We don't know when all these war attacks will end from the way government approach the use of crypto, regulations is what they not actually achieve to have unanimously because not all the crypto are centralized, moreover they had better start to erase their kind of mentality that cryptocurrency is used for making fraudulent activities, instead, its more of what the people want and the government allowing for it by making approval for everyone to use crypto, if their issue is with the bank, then we can continue the use of crypto without the use of any centralized financial regulatory system like banks.

[Faisal2202]

While I understand well the fact that the cryptocurrency industry has become riddled with scams and frauds, there is no strong basis why banks should not be working with it. Banks must provide the perimeters to make sure that scams and frauds can be avoided while doing business with people who are into cryptocurrency. I am sure this Kroo digital bank is not yet a big banking entity and they should have recognized the opportunity here to be ahead of their bigger counterparts and established a beachfront advantage. Alas, Kroo opted for a comfortable zone and soon they will realized they are already left behind. What is your message to Kroo, in case given a chance to express your own opinion on this matter?

You are right, although Kroo is not the only bank that will be left behind, Chase UK and Starling Bank will also join it (stated in the news). Your point of view is considerable, as the news also stated, that the Central Bank of Russia showed data that tells us that most of the scams occur due to the involvement of cryptocurrencies. I mean, people might be sending their bank funds to other people to buy crypto and vice versa. And once they don't receive the crypto they ask banks for a refund etc.

The increase in such cases and other frauds might have led these UK-based banks to take this step. I just checked the site of Kroo Bank, and the traffic of the website is too low, considering it I would say, this is really a small bank, speaking of other two they are not small, as they have more traffic, more customers thus more funds.

[yhiaali3]

My message to the bank is that you are wrong and you will discover your mistake later and you will retract your decision in the future. This is my brief message.

The bank's customers cannot be protected in this way. Customers cannot be protected by blocking their accounts and preventing them from using cryptocurrencies. There are other better and more effective ways that the bank could have done instead of completely banning cryptocurrency transfers.

In the end, the bank's mission is to provide a safe environment to store people's money and facilitate their financial transactions, and its mission is not to limit their choices and ban them from something they want to use.

[PX-Z]

This move is a response to the rising number of online fraud cases and scams linked to cryptocurrencies...
Specifically, if an account is used to purchase or trade cryptocurrencies, or if credits from cryptocurrency transactions are received, Kroo will block the payments. Persisting in such activities may lead to the closure of the account

Another big talk from a bank, unless they ask the source of the funds for every transaction, there's no way they can tell if someone doing crypto related transaction in p2p form.

[LogitechMouse]

This move is a response to the rising number of online fraud cases and scams linked to cryptocurrencies...
Specifically, if an account is used to purchase or trade cryptocurrencies, or if credits from cryptocurrency transactions are received, Kroo will block the payments. Persisting in such activities may lead to the closure of the account

Another big talk from a bank, unless they ask the source of the funds for every transaction, there's no way they can tell if someone doing crypto related transaction in p2p form.

Of course, they will not do it. They will just completely ban it because... they have the power to do it.
It might be true, or it might be not. They might be protecting their customers, or their business is getting affected by cryptocurrencies. Whatever the reason is, I agree with what others are saying here that they are being left behind.

They can ban it - for now, but if they saw the benefits of cryptocurrency possibly not now, but in the future, they will eat their words and soon, they will just start to accept cryptocurrency transactions again. They can do something to at least mitigate these kinds of activities, but they choose to ban it completely. I hope that this will not affect them negatively.

[hugeblack]

The bank is a profit-making institution, not a charitable organization, and therefore the owners are the ones who determine the general policy of the bank. If these owners do not want to engage in Bitcoin for several reasons, they will resort to banning trading in cryptocurrencies.
Some other banks will find it an opportunity to attract new customers for free, and so on, as long as the central bank’s policy is not hostile to cryptocurrencies

[Rruchi man]

What is your message to Kroo, in case given a chance to express your own opinion on this matter?

My message will be that they should not get too excited that they have been able to discourage crypto adoption and usage, because their efforts are not enough to stop people from using bitcoins and other cryptocurrency.

At the moment, it will really take a lot to discourage people from adopting cryptocurrency. In my country, for instance, even with how much the government is fighting cryptocurrency, more people around me are still interested in bitcoins.

[Captain Corporate]

I feel like this is just an individual thing and not really a whole UK thing, or anything global. This bank took this decision, and considering they have their own bank ,they have the right to do whatever they want and they used their right this way. I could totally see why someone would have this type of situation, and that doesn't mean that bank is making a mistake. I have seen a bank reject real estate (mortgage) loans as well, in the aftermath of 2008 for example, that's why I think its quite important and there should be very important example. Some just don't want to do anything that's it.

[hugeblack]

I feel like this is just an individual thing and not really a whole UK thing, or anything global. This bank took this decision, and considering they have their own bank ,they have the right to do whatever they want and they used their right this way. I could totally see why someone would have this type of situation, and that doesn't mean that bank is making a mistake.

Yes, whatever the advantages that this bank offers, it has given a free promotion to other banks that accept cryptocurrencies, and given the nature of the bank, it is a digital bank and therefore Bitcoin appears as a threat to the future of this bank. Quote SEO response


“In 2024 we can expect to witness a shift in consumer behaviour, as people become more aware of the financial institutions they choose to bank with.

[Gurujebs]

I feel like this is just an individual thing and not really a whole UK thing, or anything global. This bank took this decision, and considering they have their own bank ,they have the right to do whatever they want and they used their right this way. I could totally see why someone would have this type of situation, and that doesn't mean that bank is making a mistake. I have seen a bank reject real estate (mortgage) loans as well, in the aftermath of 2008 for example, that's why I think its quite important and there should be very important example. Some just don't want to do anything that's it.

It doesn't matter now but this will be sending a message across the bank communities and as well as the central bank that controls other commercial banks. If the central bank see a reason why some banks has start rejecting crypto transactions and it somehow validate their policy, they will make a policy for all for other banks to comply and that's going to be a bad sign for crypto people that lives in the UK.

My only concern is how banks tend to be a saint when they are even the most corrupt institution of government, the things they do silently and closely is not up to whatever they fear from crypto but because they have government backing, they will always form scent from above.