James Roberts, an official with Commonwealth Bank, emphasized the massive number of “investment scams” involving crypto exchanges.
The largest bank in Australia, Commonwealth Bank (CBA), has said that due to the possibility of fraud, it will refuse or temporarily halt some payments to cryptocurrency exchanges.
This choice was made in response to recent cases the US securities regulator filed against significant international exchanges. It also follows a similar action taken by Westpac, a well-known Australian bank, which forbade its clients from trading with Binance.
According to CBA, the new regulations are intended to shield customers from the risks of scams that come with sending money to cryptocurrency exchanges. To stop scammers from figuring out a means to get around the changes, specific information about the payment kinds that would be impacted has not been made public or available to customers.
The bank will put a 24-hour hold on some payments sent to cryptocurrency exchanges, and it has plans to limit monthly transfers from customers to exchanges for cryptocurrency purchases to $10,000 in the future.
The general manager of CBA’s fraud management services, James Roberts, emphasized how con artists are utilizing the interest in cryptocurrencies by pretending to be legitimate investment opportunities or directing money to cryptocurrency exchanges.
The CBA highlighted that these actions will be continually evaluated, and the bank will carefully watch their results.
The decision by CBA is a reflection of the growing concern among financial institutions regarding the potential hazards involved with cryptocurrency transactions and the requirement to safeguard customers from criminal activity in the crypto realm. It remains to be seen whether other Australian banks will follow CBA’s lead. If they do, it could have a significant impact on the cryptocurrency industry in Australia.