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London-Based Bank Halts Crypto Transactions to Combat Fraud

source-logo  coinspress.com 29 May 2024 04:08, UTC

In a bid to tackle fraud related to cryptocurrencies, London-based Kroo Bank has made a significant move.

Starting May 30th, all cryptocurrency transactions for its customers are temporarily halted. After a spate of cyber frauds, online and WordPress scams involving digital assets, it’s clear that this decision cannot come soon enough for the financial institution. Kroo Bank has given reservations on the criminal use of digital tokens, necessitating tougher measures to protect its customers’ accounts and money reserves.

Another challenger-bank Chase UK as well as Starlink have also taken similar actions by forbidding crypto transactions.

By blocking all activity related to that end, Kroo Bank aims to limit the chance of customers falling prey to scams and frauds caused by a malicous actor.

This move by Kroo Bank is typical of the types of challenges faced by financial institutions as the environment for digital asset exchanges evolves in an accelerating manner.

As cryptocurrencies increasingly feature in the common economy, banks must assess how they can ethically innovate while remaining responsive to new problems. This ban on cryptocurrency transactions in order to uphold consumer protection and financial standards in today’s digital world is a good example of those measures by banks.