NAB Blocks Several Cryptocurrency Exchanges, cites fraud

The National Australia Bank (NAB) joins the league of Australian banks to ban specific cryptocurrency exchanges, referencing the high risk of scams.

Many sources believe Binance is among the centralized crypto exchanges that the financial institution will restrict.However, NAB's head of security refused to list the crypto entities the bank has decided to ban.

Executing High-Risk Cryptocurrency Protections

On Monday, July 17, the National Australia Bank (NAB) announced on its official website that it would release some new measures to safeguard its customers from fraud. These strategies are part of the institution's bank-wide scam scheme."

In early March and July this year, the NAB paused millions of withdrawals, and it will soon bring restrictions on specific cryptocurrency platforms to prevent users from scam activities.

This information comes amid the current crackdown on the crypto industry across all the significant banks.NAB's chief of the fraud department, Chris Sheehan, refused to mention the cryptocurrency exchange the financial institute was blocking.

However, he only said that several" exchanges would be affected in the first implementation, and that could further expand in the future.

Mr. Sheehan stated that the bank's collaboration with telecom providers to battle criminals exploiting phone numbers and text message threads has brought about a 29% decline in reports of NAB-branded frauds between January and May 2023.

Binance To be Affected by the Crypto Exchange Ban

Mr. Sheehan pointed to the crypto exchange A' that the institution has various concerns and is planning to restrict payments from reaching the platform.

Also, the former Aussie Federal Police officer explained that if the agency begins to see, as always, that cybercriminals start to target other exchanges or platforms, the institution will change the rule settings.

In response to a question about whether the restriction would directly affect Binance, Sheehan only replied that the financial institution's approach would tally with the rest of the financial industry.

He added that several other big Australian banks, including the Commonwealth Bank and Westpac, have also restricted payments to Binance over the past months. These restrictions will limit the crypto exchange's ability to make payments and withdrawals using fiat currency from domestic banks.

NAB further stated the increasing narrative by domestic banks, alleging that almost 50% of all scam funds in Australia are related to the cryptocurrency industry.

The financial institution buttressed that crypto frauds are among the fastest-growing security problems, and Australia has lost over $221 million to crypto scams and attacks in 2022.

The authority further emphasized that about 40% of Australians would prefer more secure transaction experiences, even though they were to be slower.

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