HSBC Australia Bans Customer Payments to Cryptocurrency Exchanges
- From July 24, 2024, HSBC Australia will block all customer payments to cryptocurrency exchanges.
- The bank told customers in an email that the decision was due to rising cases of cryptocurrency-related investment scams.
- A recent report revealed that Australians lost $171 million to such cryptocurrency scams in 2023.
HSBC Australia has started blocking payments to cryptocurrency exchanges, citing rising fraud cases.
The bank told customers that under the new measures, which came into effect on July 24, all bank account and credit card payments to cryptocurrency exchanges were frozen. Cointelegraph noted in a report that at least six major banks in Australia are currently blocking payments to cryptocurrency exchanges.
Customer Protection
Like other major banks, HSBC Australia said it aimed to protect its customers when the country introduced the measure.
Customers wishing to pay to crypto platforms will have to find alternative methods, the bank wrote in an email.
“From 24 July 2024, HSBC will block bank account and credit card payments that we reasonably believe are being made to cryptocurrency exchanges to protect your interests,” the banking giant wrote.
The bank’s decision was informed by a recent report from Australia’s competition and consumer regulator, the ACCC. The report states that investment fraud will cost Australians as much as A$171 million in 2023.
Impact on the Crypto Industry
The notice sent by HSBC Australia to its customers was not the only major setback for cryptocurrencies in the county that day. Shortly after the bank took action, another company, Bendigo Bank, notified its customers of similar action. Bendigo Bank also cited investment scams in the cryptocurrency space, claiming its decisions were in the best interests of its customers and to protect them.
Although HSBC Australia has blocked payments to cryptocurrency platforms, the bank will still process customer cryptocurrency payments from exchanges.
Future of Cryptocurrency in Australia
It remains to be seen how other banks in Australia will respond to the rising cases of cryptocurrency-related scams. Customer protection and regulatory measures are likely to shape the future of cryptocurrency exchanges in the country.
