Australia’s Largest Bank Imposes Restrictions on Bitcoin and Cryptocurrency Exchanges

• Commonwealth Bank of Australia (CBA) has announced that it will temporarily delay certain payments or transactions due to concerns about fraud risk.
• Westpac, Australia’s third-largest bank, has also banned its customers from trading with the crypto exchange Binance.
• CBA announced on June 8 that it would “reject payments made to certain cryptocurrency exchanges or apply a 24-hour waiting period.”

Commonwealth Bank, Australia’s largest bank, has introduced a new restriction on Bitcoin and cryptocurrency exchanges.

New Restriction from Australia’s Largest Bank

Commonwealth Bank of Australia (CBA), the country’s largest bank, has announced that it will temporarily delay certain payments or transactions due to concerns about fraud risk. This decision comes after two major global exchanges recently faced legal challenges from the US securities regulator.

Additionally, Westpac, Australia’s third-largest bank, has banned its customers from trading with the crypto exchange Binance.

CBA announced on June 8 that it would “reject payments made to certain cryptocurrency exchanges or apply a 24-hour waiting period.” However, the bank did not specify which exchanges or payment types would be affected by these new measures.

In a statement, CBA said it had taken these measures to protect customers from fraud risks associated with making payments to cryptocurrency exchanges. It was also noted that in the coming months, the bank would impose a limit of AUD 10,000 (USD 6,650) per month on funds sent by customers to crypto exchanges to purchase cryptocurrencies.

Australia’s Efforts to Protect Customers Against Fraudsters

James Roberts, General Manager of Fraud Management Services at CBA, pointed out that scammers take advantage of the increasing interest in cryptocurrencies and “often appear as legitimate investment opportunities or direct funds to cryptocurrency exchanges.” CBA’s decision to introduce restrictions aims to prevent its customers from falling victim to such fraudulent schemes.

The bank stated that these measures would be subject to continuous evaluation and their impact would be continuously monitored. CBA is implementing these controls to reduce risks associated with cryptocurrency transactions and to ensure the safety of its customers’ financial assets.

In recent years, cryptocurrencies have attracted the attention of both legitimate investors and fraudsters. Regulators and financial institutions worldwide are fighting to protect individuals and businesses from fraudulent activities in the crypto space. While CBA’s move is in line with its commitment to customer protection, it remains to be seen how the crypto community will react to these measures and whether other financial institutions will adopt similar strategies.