Major Australian Bank to Block Some Payments to Crypto Exchanges

Major Australian Bank to Block Some Payments to Crypto Exchanges

The Commonwealth Bank of Australia (CBA) will continue to monitor the crypto market and review its position as the industry evolves.

The Commonwealth Bank of Australia (CBA) has announced that it will limit payments to some cryptocurrency exchanges that are considered high-risk by the bank. The decision was made to protect customers from potential fraud and scams, as well as to comply with anti-money laundering and counter-terrorism financing regulations.

According to a statement on the CBA website, the bank will use a risk-based approach to identify crypto exchanges that pose a higher level of risk to customers and the bank. The bank will then apply lower daily limits on how much customers can send to these exchanges using their CBA cards or accounts. The bank did not specify which exchanges will be affected by the new policy.

The CBA said that it supports innovation and new technologies in the financial sector, but it also has a responsibility to prevent financial crime and safeguard customer funds. The bank added that it will continue to monitor the crypto market and review its position as the industry evolves.

The CBA is not the first Australian bank to impose restrictions on crypto transactions. Earlier this year, the National Australia Bank (NAB) and Westpac also announced similar measures to limit payments to some crypto platforms. The banks cited increasing regulatory scrutiny and customer protection concerns as the main reasons for their actions.