Australia’s largest bank, Commonwealth Bank (CBA), has announced that it will refuse or temporarily delay certain payments to cryptocurrency exchanges due to concerns over the risk of scams. This decision follows recent legal challenges faced by two major global exchanges at the hands of the United States securities regulator. Additionally, it comes shortly after another prominent Australian bank, Westpac, prohibited its customers from transacting with the crypto exchange Binance.
CBA disclosed on June 8 that it would decline or impose a 24-hour hold on “certain payments to cryptocurrency exchanges.” However, the bank did not specify which exchanges or payment types would be affected by these new measures.
In a statement, CBA mentioned that it had introduced these measures to safeguard customers from scam-related risks associated with making payments to cryptocurrency exchanges. It further indicated that in the coming months, it would introduce a monthly limit of AUD 10,000 ($6,650) for customers sending funds to crypto exchanges to purchase cryptocurrencies.
Australia’s move to protect customers against scammers
James Roberts, the general manager of Australia’s CBA’s fraud management services, emphasized that scammers worldwide were taking advantage of the growing interest in cryptocurrencies. These scammers often pose as legitimate investment opportunities or divert funds into cryptocurrency exchanges. CBA’s decision to impose restrictions aims to protect its customers from falling victim to such fraudulent schemes.
The bank stated that these measures would be subject to continuous evaluation, with ongoing monitoring of their impact. By implementing these controls, CBA intends to mitigate the risks associated with cryptocurrency transactions and ensure the security of its customers’ financial assets.
It is worth noting that cryptocurrencies have gained significant popularity in recent years, attracting both legitimate investors and scammers. Regulators and financial institutions across the globe have been grappling with the challenge of safeguarding individuals and businesses from fraudulent activities in the crypto space. CBA’s move aligns with its commitment to customer protection, but it remains to be seen how these measures will be received by the cryptocurrency community and whether other financial institutions will adopt similar strategies
