Australian Banks Crack Down On Crypto, Estimates $3 Billion Scam Last Year

Key Points:

• Commonwealth Bank of Australia and Westpac Banking Corp. have imposed restrictions on payments to digital-asset trading platforms.
• Australians lost at least A$3 billion to scams in 2022, an 80% increase from the previous year, with cryptocurrency playing a significant role.

Australian banks restrict payments to crypto exchanges to protect customers from scams, following an 80% increase in scam losses in 2022.

In Australia, the banking sector is making it more difficult for customers to transfer funds to cryptocurrency exchanges. The Commonwealth Bank of Australia is the latest bank to impose restrictions on payments to digital-asset trading platforms, planning to impose a A$10,000 ($6,663) monthly limit on payments.

Some transfers will be held for 24 hours or declined. James Roberts, CBA’s general manager of group fraud management services, has stated that scammers worldwide are “masquerading as legitimate investment opportunities or diverting funds into cryptocurrency exchanges.”

Similarly, Westpac Banking Corp. has also taken steps to reduce “scam losses” by trialing new customer protections for some crypto payments. Binance Australia, on the other hand, has announced that it can no longer offer Aussie dollar deposit services due to a decision by payments solutions provider Cuscal, which said its primary focus is on “protecting Australians from financial crimes and scams.”

According to the Australian Competition and Consumer Commission, Australians lost at least A$3 billion to scams in 2022, an 80% increase from the previous year, with cryptocurrency playing a significant role. This has prompted the country’s banking sector to take steps to protect its customers from these financial crimes and scams.

Australia is not alone in stopping the risks associated with cryptocurrencies. Other countries and financial institutions have also taken similar measures to protect investors. As a result, the cryptocurrency landscape is rapidly evolving, and investors must stay informed to make better investment decisions. Understanding the risks associated with cryptocurrencies and following best practices to protect oneself from fraud and scams is crucial.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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