HSBC Australia restricts cryptocurrency exchange payments: What else will they allow?
HSBC Australia Blocks Customers’ Payments to Cryptocurrency Exchanges
The British bank HSBC has announced that starting from 24th July, it will block its customers from making payments to cryptocurrency exchanges out of concerns for customer protection. This decision was made in response to the increasing number of scams related to cryptocurrency investments, which in Australia have resulted in losses amounting to as much as 171 million dollars in 2023.
What Will the Bank Block and Allow to Proceed?
HSBC Australia intends to block the ability to make payments to cryptocurrency exchanges but will continue to allow withdrawals from these platforms. The bank has not yet disclosed which specific cryptocurrency exchanges will be subject to these restrictions, which may cause some confusion among customers.
Response of Other Banks in Australia
It is important to note that HSBC Australia is not the only bank taking such measures. Other leading Australian banks, such as the Commonwealth Bank, National Australia Bank, Westpac, and the Australia and New Zealand Banking Group, had already limited access to cryptocurrency platforms a year earlier, citing similar concerns regarding customer protection.
Warnings from Australian Financial Institutions
The Australian Transaction Reports and Analysis Centre (AUSTRAC) raises alarms regarding money laundering through cryptocurrencies and points out the vulnerability of digital currencies to being used for illicit payments. There is also anticipation of increased risks associated with cryptocurrency payments, casting doubt on the future development of this financial sector.
Intensified Control Over the Cryptocurrency Sector
Regulatory bodies such as the Australian Taxation Office and the Australian Securities and Investments Commission (ASIC) are stepping up their oversight of the cryptocurrency sector. The Australian Taxation Office is collecting personal information and transaction details from investors and cryptocurrency exchanges, while ASIC is targeting cryptocurrency entities suspected of offering unregistered securities.
The value of the cryptocurrency market in Australia is growing, leading to increased attention from authorities on this industry and the implementation of increasingly stringent monitoring and preventive measures.
