Australian bank imposes limit on payments to crypto exchanges

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Key takeaways:

  • The Commonwealth Bank of Australia has made it more difficult for its customers to transfer money to cryptocurrency exchanges.
  • These steps are being implemented in response to the increasing number of cryptocurrency-related scams.

In a move that has sent ripples through the Australian crypto community, the Commonwealth Bank of Australia, one of the country’s largest financial institutions, has recently announced restrictions on payments made to cryptocurrency exchanges. 

The decision comes as part of the bank’s effort to ensure compliance with regulatory requirements and mitigate potential risks associated with the cryptocurrency market.

The CBA’s decision to implement these measures aligns with the backdrop of a lawsuit faced by two prominent global exchanges, Binance and Coinbase, from the United States securities regulator

Notably, Binance Australia’s recent move to suspend Australian dollar withdrawals and deposits further emphasizes the scrutiny faced by crypto exchanges in the current market sentiment.

On June 8, the Commonwealth Bank of Australia announced its intention to decline or place a 24-hour hold on “certain payments to cryptocurrency exchanges.” These measures have been introduced to protect customers from potential scam risks associated with specific transactions involving cryptocurrency exchanges.

 By implementing these restrictions, the CBA aims to mitigate the likelihood of customers falling victim to fraudulent activities, thereby ensuring their financial security.

Furthermore, CBA intends to impose a monthly restriction of $10,000 AUD ($6,650) on customer transactions for purchasing cryptocurrencies through cryptocurrency exchanges. This restriction is set to be applied in the near future. 

According to James Roberts, the General Manager of Group Fraud Management Services at the Commonwealth Bank, the implementation of payment restrictions is aimed at reducing incidents and financial losses experienced by users in light of the growing number of scams.

Although these measures do not completely eliminate the risks associated with cryptocurrency transactions, Roberts stated that they are part of a broader range of initiatives intended to assist customers in minimizing their vulnerability to scams.

 The Commonwealth Bank has also emphasized its commitment to continuously reviewing the impact of these payment restrictions to ensure their effectiveness in combating fraudulent activities.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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