The Commonwealth Bank of Australia (CBA), the country’s largest financial institution, has announced plans to restrict specific payments to cryptocurrency exchanges due to concerns about potential scams. This decision aligns with similar actions from other major banks and follows a series of legal challenges faced by global exchanges from US regulatory bodies.
Earlier this month, CBA disclosed its intention to either decline or impose a 24-hour hold on “certain payments to cryptocurrency exchanges”. The bank cited the need to shield its customers from the scam risks linked to such transactions. Specific details about the types of payments to be affected have not been revealed publicly, due to concerns over scammers potentially bypassing the restrictions.
In a bid to further safeguard its customers, CBA also stated plans to cap the amount individuals can send to cryptocurrency exchanges at AUD $10,000 (approximately $6,650) per month, to be rolled out in the near future.
CBA’s general manager of fraud management services, James Roberts, highlighted that scammers worldwide are exploiting the growing interest in cryptocurrencies, presenting themselves as genuine investment opportunities or funneling funds into crypto exchanges. The bank assured that these protective measures would be subject to continuous review and assessment of their impacts.
This new stance marks a significant shift for CBA, which had previously shown a more crypto-friendly approach. In November 2021, the bank was preparing to roll out cryptocurrency trading services for its CommBank app users, signifying its intent to actively participate in the burgeoning sector. CBA’s CEO, Matt Comyn, acknowledged risks in the sector but highlighted that the potential perils of non-participation were far greater. He maintained that both the technology and the sector were here to stay.
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