• Crow Financial institution has introduced a ban on cryptocurrency transactions because of an increase in crypto scams.
• After Could 30, 2024, Kroo Financial institution will now not help any cryptocurrency-related transactions.
• The FCA has warned banks in opposition to the rising risk, following a Lloyds report which famous a 23% improve in cryptocurrency scams.

Crewe Financial institution, a London-based challenger financial institution, has banned its clients from buying and selling in cryptocurrencies, citing an increase in fraud and hacks. The financial institution stated cryptocurrencies are “more and more being utilized by fraudsters to defraud folks.”

Crow Financial institution lately up to date its amendments to its phrases of use, declaring that it’s going to now not help cryptocurrency transactions after Could 30, 2024. The assertion reads:

“To maintain your accounts and funds protected, we’re introducing some restrictions on the sorts of funds you may make or obtain in your Kroo account. From 30 Could 2024, we’ll now not help financial institution transfers or card transactions associated to cryptocurrencies.”

Talking about what was driving Crew Financial institution's strategic determination, the platform stated that the choice was made “as cryptocurrencies are more and more being utilized by fraudsters as a method to defraud folks.” Crew Financial institution is reportedly following within the footsteps of challenger banks similar to Starling Financial institution and Chase UK, which have already imposed restrictions on cryptocurrency transactions.

In September 2023, JPMorgan Chase UK introduced a ban on cryptocurrency transactions to keep away from any threats. A spokesperson defined:

“As a result of improve in crypto scams concentrating on UK customers, we’ve got made the choice to ban customers from buying crypto property with Chase debit playing cards or sending funds to crypto websites from Chase accounts.”

By banning crypto transactions, Crow Financial institution will refuse to just accept crypto funds to asset suppliers, and additional acknowledged that it’s going to not encourage any crypto-related exercise inside its platform.

This strategic transfer by Crow Financial institution comes shortly after the Monetary Conduct Authority (FCA) issued a warning in regards to the dangers inherent in cryptocurrency buying and selling. A Lloyds report confirmed a 23% improve in cryptocurrency scams final 12 months, and the FCA has warned banks in regards to the potential risks.