Australia’s Big Four Banks Block Payments To Crypto Exchanges

Australian authorities’ heightened crypto scrutiny has led to banks being reluctant to work with crypto exchanges and firms. National Australia Bank Ltd (NAB) has joined the country’s other leading banks such as Westpac Banking Corp., Commonwealth Bank of Australia, and Australia & New Zealand Banking Group to block payments to high-risk crypto exchanges.

National Australia Bank Blocks Access To Crypto Exchanges

One of the four largest financial institutions in Australia, National Australia Bank, blocks some payments to high-risk crypto exchanges in the country. It cites concerns about risks from crypto scams as the primary reason for blocking access to digital asset platforms.

Chris Sheehan, an executive for group investigations and fraud at NAB, said:

“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 Corp., Commonwealth Bank of Australia, and Australia & New Zealand Banking Group Ltd earlier started curbing access to crypto exchanges similarly, with Binance also impacted. National Australia Bank (NAB) identified crypto scams as a fast-growing security threat that cost Australians A$221 million (USD $151 million) last year.

According to scams reported to the Australian Financial Crimes Exchange in the last 30 days, almost 50% are linked to crypto. NAB didn’t specifically report the crypto exchanges impacted by the move, but labeled them as “high-risk.”

Also Read: Celsius Liquidates Altcoin Holdings: $25 Million Worth of LINK, BNB, BONE, and More Sold

Binance Facing Regulatory Challenges in Australia

Binance stopped facilitating all Australian dollar (AUD) withdrawals after its banking partner Cuscal winded down its partnership citing fraud concerns and as big bank Westpac banned customers from transferring to the exchange in May.

Australia has become one of the top crypto markets, with billions in daily trading volume. However, Australian Securities and Investments Commission (ASIC) actions against crypto exchanges has impacted the daily trading volumes.

Meanwhile, Monochrome Asset Management and Vasco refiled the first spot Bitcoin ETF application under Australia’s new crypto regulations.

Also Read: US Fed Suer Intervenes US SEC Lawsuit Against Binance And CEO “CZ”

Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

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