Another Australian bank places limits on payments to crypto exchanges

Commonwealth Bank, one of Australia’s big four banks, announced on June 8 that it would decline or hold “certain payments” to crypto exchanges.

The move comes after Australia’s oldest bank, Westpac, banned payments to crypto exchanges in May.

Effective June 8, Commonwealth Bank will decline or place a 24-hour hold on “certain payments” to crypto exchanges. Also, “in the coming months,” the bank’s users will face an AUD 10,000 ($6,650) monthly limit on crypto exchange payments.

The bank explained that the restrictions protect customers from the risks of scams associated with making payments to crypto exchanges. However, the press release did not clarify what “certain payments” meant or which exchanges would be impacted.

James Roberts, Commonwealth Bank General Manager of Group Fraud Management Services, said that amid increasing scams, the bank’s payment restrictions would help reduce incidents and the funds lost by users. While the measures will not eliminate the risks, “they are part of a range of initiatives designed to help customers reduce their risk of falling victim to a scam,” he added.

Commonwealth Bank said it will review the impact of the payment restrictions on an ongoing basis.

The payment restrictions mark a significant change for the bank, which had previously aimed to launch its crypto-trading services in conjunction with Gemini and Chainalysis. The partnership was set to offer crypto trading services to millions of Commonwealth Bank app users.

However, in May 2022, the project was put on hold after regulators denied approval for the venture.

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