HSBC Australia will block customer payments to cryptocurrency exchanges starting July 24 due to rising concerns over investment scams. Australians lost up to $171 million in crypto-related scams in 2023, prompting the bank’s action.
While payments to crypto exchanges are prohibited, customers can still receive funds from these platforms. HSBC Australia advised affected customers to find alternative payment methods. This move aligns with actions taken by other major Australian banks, including Commonwealth Bank and Westpac, last year.
AUSTRAC has heightened warnings about money laundering through digital currencies, noting vulnerabilities in crypto payments. Regulatory bodies like the Australian Taxation Office and the Australian Securities and Investments Commission are increasing scrutiny on the sector, targeting unregistered securities.
This strategic move underscores the growing regulatory focus on protecting consumers and mitigating financial crime risks in the cryptocurrency space.
