Jun 13, 2023 05:05
In a
proactive move to enhance customer safety, the Commonwealth Bank (CBA) today (Thursday)
announced it has implemented new measures aimed at protecting customers from
fraudulent activities tied to cryptocurrency exchanges.
In
practice, this means that the bank will be able to block some outgoing
transfers to selected cryptocurrency exchanges. However, the institution has
not specified which platforms may be specifically concerned.
Australian Bank to Block
Some Crypto Payments
In an
attempt to minimize scam risks, from today onwards, the bank will decline or
hold certain payments to crypto exchanges for 24 hours. In addition,
the CBA plans to impose an AUD 10,000 limit per calendar month on customer
payments towards cryptocurrency exchanges where it can ascertain that the
payments are intended for cryptocurrency purchases.
These
actions are part of an array of initiatives intended to help customers mitigate
the risks associated with victims falling for scams.
James
Roberts, the General Manager of Group Fraud Management Services at Commonwealth
Bank, acknowledged consumers' rising interest in cryptos and warned of
global scammers exploiting this trend.
“With the
incidences of scams increasing and in many cases customers suffering
significant losses from being scammed, the introduction of 24 hour holds,
declines and limits on outbound payments to cryptocurrency exchanges will help
reduce both the number of scams and the amount of money lost by customers,”
Roberts commented.
The CBA will
continue to monitor the effects of these scam response measures closely and
will undertake continuous reviews of their effectiveness.
Australia Limits Access to
Cryptocurrencies
A similar
move was made last month by another of Australia's largest banks, Westpac. It
announced that it would block some cryptocurrency payments in order to limit
customer losses. However, like the CBA, it did not specify which exchanges
might be involved.
These
decisions follow Binance Australia's, the local branch of one of the largest digital
assets exchanges in the world, announcement that customers would lose access to
deposits and withdrawals in AUD after the payment company, Cuscal stopped providing
its service.
Before the
final date of deposit blocking, investors were panic-selling their Bitcoins on
the Australian platform, which made them available at up to 20% cheaper than on
competing exchanges.
Binance is
also facing challenges in the United States. This week, US regulators have
initiated a lawsuit against the platform, alleging that it has manipulated
trade volumes to appear higher than they truly are. A distinct lawsuit is
addressing the issue of offering financial instruments that bear the
characteristics of securities without appropriate regulations.
This article was written by Damian Chmiel at www.financemagnates.com.
World Crypto Global
