Bank in Australia Takes Actions for Crypto Exchange Payments

The largest bank in Australia has revealed several conditions on payments to crypto exchanges in the country. The bank brought up the conditions in the wake of taking measurements against the rising crypto scams. With steps like from holding the payments to denying them, they would ensure the customer safety from scammers in the burgeoning asset class industry.

Commonwealth Bank (CBA) in an announcement on Thursday, June 8, stated the measures to safeguard the customers from scams is to be applied from the same day. These measures include declining “certain payments to cryptocurrency exchanges” right away, or to put them on hold for 24 hours.

In the coming months, CBA will also introduce a monthly limit for transferring funds up to $10,000 AUD. The bank will still go for the identification of customer payments made for buying of cryptocurrencies from the exchanges firm.

Fraud Management Services Group General Manager at Commonwealth Bank, James Roberts, stated that given the rising popularity and widespread adoption of cryptocurrencies among common people, the possibility of scams goes up simultaneously. People hoarded with money lure illicit people to take advantage and get benefit from it. They disguise the scams under the “legitimate investment opportunities” or else divert the stolen funds towards the crypto exchanges.

“With the incidences of scams increasing and in many cases customers suffering significant losses from being scammed, the introduction of 24 hour holds, declines and limits on outbound payments to cryptocurrency exchanges will help reduce both the number of scams and the amount of money lost by customers.”

Though the scam controlling measures will be imposed from the day of announcement, they are subjected to be monitored and will be looked after for the impacts and efficacies. The reviews will be showcasing the efficacies of the plan.

According to the bank, the people making most of the payments to crypto exchanges are most prone to the fall for the risks related to getting scammed.

However, Roberts added the measures aim at the broader perception and part of “range of initiatives” from the funnel which is prepared in a way to help their customers for having less chances to fall “victim to a scam.”

Crypto Exchanges in Trouble in the US

The action of Commonwealth Bank against the crypto exchanges payments emerged amid the ongoing issue of the world’s biggest crypto exchanges facing regulatory actions in the United States.

The United States regulator, Securities and Exchange Commission, took a fierce decision and charged the biggest crypto exchange in the world and the biggest exchange in the US. Though the broader cryptocurrency market witnessed trembles initially, it recovered and got stable after the sentiments rose all over considering the chances of better crypto regulations down the road.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing