HSBC Australia, formerly known as the Hong Kong Bank of Australia Limited, has informed its users that starting from July 24 it will refuse payments to crypto exchanges. Citing issues regarding frauds and dishonest behavior, this development adds HSBC to the list of big institutions that have opposed the sector.
HSBC Australia sent out an email to its customers, stating new safety precautions, barring “payments from bank accounts and credit cards that [it] reasonably believe are being made to cryptocurrency exchanges.” The bank underlined that this action is meant to protect consumers’ funds. It also advised individuals wanting to make transactions using cryptocurrencies to look for other payment options.
HSBC Australia Follows Big 4
HSBC Australia’s decision is backed by data from Australia’s competition and consumer regulator. It reports that Australians lost up to $171 million to investment scams in 2023. By implementing this payment block, HSBC aims to mitigate the risk of customers falling victim to such scams.
Notably, HSBC clarified that it would continue to accept payments from cryptocurrency exchanges and that regular banking operations would not be affected. This means customers can still receive funds from their crypto investments, though initiating new transactions to buy cryptocurrencies will require different arrangements.
This move by HSBC follows similar actions taken by Australia’s “Big Four” banks—Commonwealth Bank, National Australia Bank, Australia and New Zealand Banking Group (ANZ), and Westpac—over the past year. Bendigo Bank also adopted comparable measures shortly thereafter, all driven by the intent to protect customers from crypto scams.
Need for Better Regulations
According to a 2022 study by Statista, 25.6% of the Australians were owning crypto at the time. The country has been gradually shaping its regulatory framework for the industry. In June this year, Australia Securities Exchange (ASX) approved the first spot bitcoin exchange-traded fund (ETF) in the region.
In a recent interview, Amy-Rose Goodey, managing director of Blockchain Australia, voiced her concerns on HSBC Australia’s payment block. She revealed that she was not informed of HSBC’s decision in advance, highlighting a recurring issue in the relationship between Australian banks and the cryptocurrency sector.
Goodey noted that this is part of a broader and troubling trend of restrictive measures that impact the digital currency community. She further noted the importance of dialogue and the development of a comprehensive regulatory framework that can support innovation while addressing potential risks effectively.
The post HSBC Australia Blocks Payments to Crypto Exchanges Amid Scam Concerns appeared first on Latest News and Insights on Blockchain, Cryptocurrency, and Investing.
