Australia’s Largest Bank to Temporarily Cease ‘Certain’ Payments to Crypto Exchanges 

The Commonwealth Bank of Australia (CBA), Australia’s largest bank, has announced a temporary cut in “marked” payments to cryptocurrency exchanges as part of newly introduced measures to fight scams in the country.

According to the official launchCBA will refuse or suspend crypto payments for 24 hours or longer. As part of its fraud risk measures, the bank will also place a limit of A$10,000 (US$6,650) on payments made to exchanges in the coming months.

CBA to pause some crypto payments

James Roberts, General Manager of CBA Group Fraud Management Services, said:

“Consumer interest in cryptocurrency is growing, and unfortunately, scammers globally are taking advantage of this trend and masquerading as legitimate investment opportunities or transferring funds to cryptocurrency exchanges. Customers who make payments to cryptocurrency exchanges currently face a much higher risk of being scammed. “.

Roberts added that introducing suspensions, rejections, and restrictions on payments to 24-hour cryptocurrency exchanges will help reduce the number of scams and the amount of money lost by customers. The CBA will monitor the impact of fraud measures, and you will be subject to review.

“Across Australia, a holistic ecosystem approach is required to combat fraud, and CBA is committed to helping keep customers safe, as part of a broader national focus by government, regulators, banks and other industry sectors. We are committed to being part of the broader solution with government regulators, banks, telecoms and other industry sectors to keep Australians safe.”

Big turn

CBA’s move is a major shift for the bank that announce In November 2021, it will enable cryptocurrency trading for the Australian dollar on its banking app, CommBank. The CBA was to become the first Australian bank to roll out such services, supporting ten crypto assets, including Bitcoin (BTC), Bitcoin Cash (BCH), Ether (ETH), and Litecoin (LTC).

However, a row with Australian financial regulators last year prevented the launch of a pilot program for the cryptocurrency trading service.

The CDA is not the only major Australian bank preventing customers from doing business with the cryptocurrency exchange. Last month, Westpac banned its users from making payments to leading cryptocurrency exchange Binance as part of its latest protections against scams.

Meanwhile, the Australian Prudential Regulatory Authority (APRA) directions Banks are reporting exposure to crypto-related projects and startups.