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.
Table of Contents
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
- Choose a regulated crypto exchange
Pick a trusted, regulated platform that supports UK users and GBP deposits. eToro is a popular choice because it is regulated, beginner-friendly, and allows users to buy Bitcoin alongside other assets. - Check Kroo’s policy on crypto transactions
Before sending money, review Kroo’s current policy regarding transfers to investment or crypto platforms. This helps avoid declined payments or temporary account flags. - Create and verify your eToro account
Sign up at eToro using your email, choose a strong password, and complete identity verification. Verification is required under UK financial regulations and usually takes a short time. - Deposit GBP from your Kroo account
Go to the Deposit Funds section on eToro and choose Bank Transfer. You’ll receive eToro’s banking details and a payment reference. Open your Kroo app and send GBP using those details. Bank transfers are typically processed within 1–2 business days. - Buy Bitcoin on eToro
Once your funds arrive, search for Bitcoin (BTC) on the platform. Click Invest, enter the amount you want to purchase, review the fees, and confirm the trade. You now own Bitcoin exposure through eToro. - Secure and manage your Bitcoin
You can hold your Bitcoin within your eToro account or transfer eligible crypto to the eToro Money wallet for additional control. Always enable two-factor authentication to keep your account secure.
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.
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