HSBC Australia Blocks All Customers’ Payments to Crypto Exchanges Due to Scams

HSBC has introduced an additional protection layer to customers as it blocks all payments to crypto exchanges. According to the International Bank, all crypto transactions will decline starting July 24.

The decision protects the bank's customers from growing scams in the crypto space. Moreover, HSBC is not alone in this move; some prominent Australian banks have also restricted customers' access to crypto transactions.

HSBC Australia Blocks All Crypto-Related Payment Transactions

The international bank HSBC has announced plans to block all customers' payments to crypto exchanges in Australia. The restriction will take effect on July 24, the country's local time.

Further, HSBC cited the increasing threats of scams associated with crypto assets as the reason for its decision. Also, it highlighted some of its new safety measures to curb the menace of crypto-related risks and fraud.

HSBC stated: From July 24, 2024, HSBC will block payments from bank accounts and credit cards that we reasonably believe are being made to cryptocurrency exchanges for your protection.

Meanwhile, HSBC Australia informed its customers that they could still receive funds from crypto exchanges in their accounts. However, those who want to make payments in crypto will seek alternative platforms.

It wrote: If you still want to make a payment to a cryptocurrency exchange, you'll need to contact them to see what alternative methods of payment are available."

The bank highlighted some striking data regarding crypto scams from Australia's competition and consumer regulator to facilitate its restriction stance. According to the report, Australians have lost about $171 million via crypto scams and fraud in 2023.

In addition, HSBC noted its commitment to enhance its security capacities and strengthen its system to protect customers from threats. Moreover, it apologized to users for any inconvenience the changes may impose on their financial needs.

HSBC Australia has about 45 branches nationwide and boasts over 1.5 million users.

Other Prominent Australian Banks Restrict Crypto Access

Besides HSBC Australia, some prominent banks have also restricted crypto access to customers. Bendigo Bank preceded HSBC Australia in blocking crypto transactions. Also, the bank said the move aligns with its need to protect users from crypto scams and threats.

Similarly, in 2023, four major Australian banks - Commonwealth Bank, Westpac, National Australia Bank, and Australia and New Zealand Banking Group (ANZ) censored crypto payments.

The banks highlighted their concerns about crypto scams and other associated risks in digital assets investments and trades.

Moreover, the Australian financial regulator has warned against rising crypto money laundering. The watchdog, via its national risk assessment, reported the threats and vulnerabilities of crypto use, including terrorist financing and money laundering.

Meanwhile, the Digital Economy Council of Australia Managing Director Amy-Rose Goodey has reacted to HSBC's latest crypto restriction. The director criticized HSBC for not releasing any prior notice regarding its decision.

Further, Goodey noted that the bank's move has sparked concerns in the country's crypto sector. Also, it pointed out that the restriction will negatively impact the crypto community.

Again, Goodey believes the decision underscores the need for dialogue and enhanced regulatory regulations that would improve digital innovation in Australia.

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