The Australian unit of international bank HSBC has informed its customers that it will block customer payments to cryptocurrency exchanges from July 24 local time, becoming the latest major bank to shun the industry due to fraud.
From July 24, 2024, HSBC will block payments from bank accounts and credit cards that are reasonably believed to be made to #cryptocurrency exchanges in order to protect our customers.
"In a statement sent to customers on July 24, HSBC Australia outlined the new security measures.
If you want to make payments to cryptocurrency exchanges, you will need to find alternative payment methods.
To justify its decision, HSBC cited figures released by Australia's competition and consumer regulator that show Australian citizens could lose up to $171 million to investment fraud by 2023.
HSBC apologized for the "inconvenient" changes, but stressed that ensuring the safety of customers' money is its top priority.
HSBC's decision comes just 12 months after the "big four" Australian banks - Commonwealth Bank, National Australia Bank, Westpac Bank and Australia and New Zealand Banking Group (ANZ) - took similar measures to restrict payments to cryptocurrency exchanges. more than a month later. Australia's Bendigo Bank soon followed suit, citing the need to protect customers from investment fraudsters.
Amy-Rose Goody, chief executive of the Digital Economy Council of Australia (formerly #Blockchain Australia), told Cointelegraph she was "not informed in advance" of HSBC's decision.
HSBC's recent decision to block all payments to cryptocurrency exchanges has reignited concerns about ongoing issues between Australian banks and the cryptocurrency sector, Ms. Goody said, adding that the move was not an isolated one and would affect the entire #digital currency community. He added that it reflected a "worrying trend" of restrictions affecting the sector.
This underscores the need for dialogue and improved regulatory frameworks to support innovation and effectively address potential risks.
Without such a dialogue, Mr.
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