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HSBC Australia Blocks Crypto Transactions amid $171M Loss
HSBC's Australian branch has informed customers that it hasbegun blocking payments to cryptocurrency exchanges starting July 24. The bankcited scams as the reason for this action.
HSBC Blocks Crypto Payments
In a July 24 email to customers, HSBC Australia explainedits new safety measures. The bank stated: From 24 July 2024,HSBC will block payments from bank accounts and credit cards that we reasonablybelieve are being made to cryptocurrency exchanges, for your protection.The email also advised customers to find alternative ways to make payments tothese exchanges.
HSBC supported its decision by referencing data fromAustralia's competition and consumer regulator, which showed Australians lostup to $171 million in investment scams in 2023. The bank apologized for theinconvenience but emphasized that its priority is keeping customer money safe.
HSBC Australia halts crypto payments due to scam concerns!Customers can no longer make payments to crypto exchanges.Is this a sign of tighter regulations to come?
Crypto Miners (@CryptoMiners_Co) July 25, 2024Bendigo Bank Blocks Crypto
Following HSBC's move, Bendigo Bank also decided to blockpayments to cryptocurrency exchanges. This bank similarly cited the need toprotect customers from investment scams.
Amy-Rose Goodey, Managing Director of the Digital EconomyCouncil of Australia (DECA), stated that DECA was not informed in advance ofHSBC's decision. She told Cointelegraph that HSBC's decision highlights theongoing challenges between Australian banks and the cryptocurrency sector.
Goodey described the move as part of a concerning trend ofrestrictions that affect the digital currency community.
Goodey emphasized the need for dialogue and improvedregulatory frameworks that balance innovation and risk management. She warnedthat without dialogue, more Australians could lose their financialright to participate in the digital economy.
Goodey also mentioned that establishing clear, fair,and forward-thinking regulations would help banks and industry playerscombat scams without hindering innovation. She noted that DECA has madeprogress since 2023, including being added to the advisory board of theNational Anti-Scam Center.
HSBC clarified that it would still accept customer paymentscoming from cryptocurrency exchanges and that other banking services wouldcontinue as usual. HSBC Australia currently serves 1.5 million customersthrough 45 branches across the country.
This article was written by Tareq Sikder at www.financemagnates.com.
