How to Buy Bitcoin with Kroo Bank in the UK

Introduction

Cryptocurrency has gained ground across the UK, with many opting for it as it presents better options to save, invest, or hedge against uncertainty. Despite its growth, several banks in the UK continue to ban crypto-related payments made through them. Reports reveal that almost 40% of attempted bank transfers to exchanges are delayed or blocked, even when the exchanges are compliant with laws in the UK. Payment disruptions, transfer limits, and rejections have become a common phenomenon. This pushback from banks has surfaced as a major challenge for most people. It creates friction for individuals using regular bank accounts to buy crypto. To clear every doubt and misgiving, we’re addressing how to buy Bitcoin with Kroo bank by breaking down what is possible, what is restricted, and why those limits exist. 

Is it allowed to buy Bitcoin directly with Kroo Bank?

Buying Bitcoin straight from your Kroo Bank app is no longer an option as it used to be. Kroo does not have a built-in crypto section where you can place a BTC order. It has no provision for keeping digital assets or making payments through a debit or credit card.

Meanwhile, a common workaround is to move money from your Kroo account to third-party platforms that deal in Bitcoin. Keep in mind that Kroo cannot serve as a digital wallet or as a trading platform. You cannot buy or sell crypto with your Kroo account or check crypto balances from the bank’s dashboard. Kroo focuses on standard banking services. Any Bitcoin purchase can only take place after withdrawing funds.

Why did Kroo Bank Ban Crypto Transactions?

It’s no news that banks can make decisions on how accounts operate within their platform. In this vein, Kroo Bank took a firm stance regarding crypto payments after reviewing the level of risk tied to them. Under its updated rules, payments linked to crypto exchanges or crypto services get blocked at the point of transfer from May 30, 2024. The bank described crypto payments as showing a higher rate of scams and disputed transactions, which puts customer funds and the bank at risk. It has since discontinued card payments and bank transfers connected to these platforms, even when they operate within UK rules. Beyond blocked payments, Kroo also watches account activity connected to crypto use. If users repeatedly attempt to send or receive funds from crypto trading platforms, they can trigger account restrictions. These restrictions include limits on outgoing payments or temporary freezes while the bank reviews the situation. In more serious or recurring cases, it can close an account under its terms.

Moreso, Kroo’s decision fits into a wider pattern across the UK banking space. Since crypto crime is almost shaping into a trend, banks face the pressure to reduce fraud and manage customer complaints tied to lost funds. So even though crypto is legal in the UK, many high street banks currently apply strict controls and policies to crypto-related payments. As a result, crypto transactions are recognised as one of the most restricted activities across UK bank accounts. Users are not just waiting but seeking indirect and compliant alternatives instead.

How to buy Bitcoin with Kroo Bank

• An intermediate UK bank account as a bridge
  One common route is to transfer money from your Kroo account to another UK bank that has fewer crypto restrictions. This second bank account acts as a buffer between Kroo and the crypto exchange. Once the deposit into the secondary account is successful, you can fund your exchange account from there. The transaction cannot be blocked since it doesn’t have a crypto label.
• Funding a multi-currency app
  Another option to consider is sending money from the bank to a regulated multi-currency app that supports GBP balances. With these apps, users can make payments that would appear as a standard transfer. This is possible because these types of platforms are not entirely tied to crypto processing. After your balance is funded, you can withdraw money from the app into a crypto exchange using the app’s own payment rails. Many individuals use this method to buy crypto with Kroo, bypassing restrictions.
• Using peer-to-peer marketplaces on regulated exchanges
  Peer-to-peer (P2P) trading is another feasible process that involves buying Bitcoin from another person instead of going through the common route of sending money straight to an exchange. First, you transfer GBP from your Kroo account to the seller’s UK bank account.  This is a normal bank transfer with no crypto reference. After the seller confirms payment, the Bitcoin is released to you through the platform’s escrow system. With this method, you can avoid direct exchange payments and the bank’s restrictions.
• Topping up BTC through non-crypto payments
  Some users receive Bitcoin from another wallet or person. Afterwards, they build their crypto balance over time through methods that do not involve Kroo transfers to exchanges. This may include salary payments into other accounts or non-crypto income routes. The distinction in utility of Kroo for daily spending and other alternatives for crypto activities reduces account friction.
• Keeping each account for separate rails
  A practical setup many people prefer is to keep Kroo strictly for the usual: banking, bills, and savings, while crypto activity runs through platforms specifically meant for digital assets. This clear separation lowers the risk of facing barriers as each account plays a single role instead of mixing functions.

FAQs

What is Kroo Bank? 

Kroo Bank is a UK digital bank with no physical branches, operating remotely through a mobile app. It was founded in 2016 and rebranded to “Kroo” before receiving a full UK banking licence in 2022. That licence places Kroo under the same regulations as long-established UK banks. Customer deposits are protected by the Financial Services Compensation Scheme, exceeding the £85,000 limit and up to £120,000.

Users can oversee their day-to-day financial tasks, such as paying bills or making a purchase, etc, through their phone. The Kroo app serves as the main control centre, which displays incoming payments, outgoing expenses, and scheduled direct debit. 

Kroo bank stands out with its interest on money held in a current account, an offer many traditional banks do not include. Users get access to savings products such as cash ISAs, depending on what is active at the time. Its debit card works in the UK and abroad for spending, with no extra charges from Kroo on card use outside the country. With its security tools, you can freeze or unfreeze your card, use fingerprint or face ID to sign in, and track spending as it happens. The app also sorts transactions into categories, which helps you track spending.

What Crypto-Related Services does Kroo Bank Support?

Kroo Bank is as basic as it gets with regard to cryptocurrency. As stated earlier, it has no feature that supports crypto transactions as it treats them with extra caution, often flagging or blocking payments to crypto exchanges. What it does handle is standard banking tasks.

Does Kroo Bank allow Deposits to Crypto Exchanges?

From what we’ve shared so far, one certain fact about Kroo Bank is its unfavorable stance on crypto transactions, which includes deposits to crypto exchanges. In place of a Kroo account, there are alternative routes that can help you boycott this restriction. We’ve shared these practical options earlier and how to use them. By following those steps, you can still make your Bitcoin purchase even when direct payment paths fail.

What is the Best Alternative to Kroo Bank in the UK? 

If you want to buy Bitcoin with Kroo bank but run into blocked payments, the next best option is to use a UK bank that supports direct transfers to crypto exchanges. Banks like Revolut and Starling are better options because they process payments to regulated crypto platforms without the disruptions common with Kroo. You can move money from Kroo to these accounts and then complete your crypto purchase, following the methods outlined above.

Conclusion

This guide has revealed the obvious, showing that cryptocurrency purchases now has its limits with regular banks. Similar to others, Kroo Bank has set clear limits around crypto transactions, which reinforces the desire for financial security in the UK. With the information we've provided, you can easily avoid stressing over blockades with those alternatives. Understanding how your bank functions will also help you manage funds within its boundaries and set up your account to suit its structure.