The British bank Kroo has prohibited its clients from making transactions with cryptocurrencies in order to protect them from losing funds due to increasing cases of cryptocurrency fraud.

In the updated Terms of Service, Kroo management indicated that as of May 30, the bank will no longer support transfers or transactions related to cryptocurrencies. The financial institution will reject payments to virtual asset service providers and will not process wire transfers from senders involving cryptocurrencies. The decision comes in the wake of a growing number of online scams and cryptocurrency scams where scammers use digital assets to defraud unsuspecting people.

“These payment restrictions are in place to ensure the security of your account and funds. We made this decision because cryptocurrencies are increasingly being used by criminals to defraud people,” said Kroo Bank management.

Previously, similar bans on cryptocurrency transactions were introduced by the British banks Chase UK and Starling, due to the high volatility of cryptocurrencies and the lack of clear rules for their regulation. In 2023, Lloyds Bank researchers warned that complaints against crypto scammers had risen by 23% compared to the previous year.

Last fall, the UK's Financial Conduct Authority (FCA) blacklisted 143 crypto companies, warning the public about the dangers of investing in digital assets.