CBA, Australia’s largest bank, has announced new measures to limit crypto exchange payments a month after Westpac’s made a similar move. The bank cites the risk of scams and misleading ads as the main reasons for the restrictions.
New Crypto Payment Measures
Commonwealth Bank of Australia (CBA) announced on Thursday that it would introduce new measures to help protect customers from scam risks associated with certain payments to crypto exchanges.
The bank stated that it would decline or impose a 24-hour hold on “certain payments” to crypto exchanges without specifying which exchanges or payment types will be affected.
The bank also said it would soon introduce a monthly A$10,000 ($6,666) transfer limit to crypto exchanges for its customers.
“Customers who make payments to cryptocurrency exchanges are currently facing a significantly higher risk of potentially being scammed,” said James Roberts, CBA’s general manager of group fraud management services, in a statement.
CBA’s announcement comes after another major Australian bank, Westpac, banned some payments to crypto exchanges last month, citing similar concerns about scam losses.
Westpac also did not name the specific exchanges or payment methods affected by its ban.
However, one of the exchanges impacted by Westpac’s ban was Binance, the world’s largest crypto exchange by trading volume.
Binance Australia informed its customers on May 18 that it could no longer accept deposits or withdrawals in Australian dollars because its payments provider, Cuscal, cut access.
At the time, Cuscal, a major provider of payment solutions in Australia, said its primary focus was “protecting Australians from financial crimes and scams.”
Binance Australia said it was working on finding alternative solutions for its customers.
CBA’s move to restrict crypto payments also comes ahead of the EU’s planned regulation of crypto assets with the new Markets in Crypto Assets Regulation (MiCA), which is expected to take effect in 2024.
