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Commonwealth Bank of Australia (CBA), the largest financial institution in Australia, has declared a temporary reduction in “certain” payments to cryptocurrency exchanges as part of newly implemented strategies to combat scams within the nation.
As stated in an official announcement, the CBA will either decline or hold crypto payments for a duration of 24 hours or longer. In conjunction with the scam risk initiatives, the bank will impose a limit of A$10,000 ($6,650) on payments made to exchanges in the upcoming months.
CBA to Suspend Certain Crypto Payments
James Roberts, CBA General Manager of Group Fraud Management Services, remarked:
“Consumer interest in cryptocurrencies has been on the rise, and regrettably, scammers worldwide are exploiting this trend by posing as legitimate investment opportunities or redirecting funds into cryptocurrency exchanges. Customers making payments to cryptocurrency exchanges are currently facing a significantly elevated risk of potentially being defrauded.”
Roberts further noted that the implementation of 24-hour holds, declines, and limits on payments to crypto exchanges would assist in decreasing both the incidence of scams and the financial losses experienced by customers. The CBA will assess the effects of the scam measures, which will be subject to evaluation.
“Throughout Australia, a comprehensive ecosystem approach is necessary to tackle scams, and CBA is dedicated to ensuring customer safety, as part of a wider national initiative involving government, regulators, banks, and other industry sectors. We are committed to being part of the broader solution alongside government, regulators, banks, telecommunications companies, and other industry sectors to protect Australians,” Roberts added.
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A Significant Shift
The CBA’s decision marks a significant shift for the bank, which announced in November 2021 its intention to facilitate crypto trading for Australians via its banking app, CommBank. The CBA was set to become the first Australian bank to launch such services, supporting ten crypto assets, including Bitcoin (BTC), Bitcoin Cash (BCH), Ether (ETH), and Litecoin (LTC).
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However, a conflict with Australia’s financial regulators last year hindered the initiation of a pilot for the crypto-trading service.
The CBA is not the only prominent Australian bank to restrict customers from engaging with a crypto exchange. Last month, Westpac prohibited its users from making payments to the leading crypto trading platform Binance as part of recent protective measures against scams.
Meanwhile, the Australian Prudential Regulation Authority (APRA) has directed banks to disclose their exposure to crypto-related enterprises and start-ups.
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