The National Australia Bank has joined Australia’s four major banks in blocking payments to cryptocurrency exchanges.
The reluctance of banks to work with crypto exchanges and firms is a result of the Australian government’s increased crypto scrutiny. National Australia Bank Ltd (NAB) has joined Australia’s other prominent banks blocking payments to high-risk cryptocurrency exchanges, including Westpac Banking Corp., Commonwealth Bank of Australia, and Australia & New Zealand Banking Group.
National Australia Bank Restricts Cryptocurrency Exchange Access
National Australia Bank, one of Australia’s four most prominent financial institutions, blocks certain remittances to high-risk crypto exchanges. It cites concerns over crypto fraud as the primary justification for restricting access to digital asset platforms.
Chris Sheehan, an executive at NAB responsible for group investigations and misconduct, stated:
“These scammers are part of organized, transnational crime groups. Increasingly, we’re seeing them use cryptocurrency platforms to send stolen funds quickly and often overseas.”
Westpac Banking Corporation, Commonwealth Bank of Australia, and Australia & New Zealand Banking Group Ltd had previously begun restricting access to cryptocurrency exchanges, with Binance also affected. National Australia Bank (NAB) identified crypto schemes as a rapidly escalating security risk that cost Australians A$221 million ($151 million) in 2017.
Almost half of the schemes reported to the Australian Financial Crimes Exchange in the last 30 days involve cryptocurrency. NAB did not specify which crypto exchanges were affected by the decision but designated them “high-risk.”
In Australia, Binance Faces Regulatory Challenges
Binance ceased facilitating all Australian dollar (AUD) withdrawals after its banking partner Cuscal terminated the partnership, citing fraud concerns. After the significant bank, Westpac prohibited customers from transferring to the exchange in May.
Australia has become one of the leading crypto markets, with daily trading volume in the billions of dollars. However, actions taken by the Australian Securities and Investments Commission (ASIC) against cryptocurrency exchanges have affected daily trading volumes.
Meanwhile, Monochrome Asset Management and Vasco resubmitted the first Bitcoin spot ETF application under Australia’s new cryptocurrency regulations.
