In aproactive move to enhance customer safety, the Commonwealth Bank (CBA) today (Thursday)announced it has implemented new measures aimed at protecting customers fromfraudulent activities tied to cryptocurrency exchanges.
Inpractice, this means that the bank will be able to block some outgoingtransfers to selected cryptocurrency exchanges. However, the institution hasnot specified which platforms may be specifically concerned.
In anattempt to minimize scam risks, from today onwards, the bank will decline orhold certain payments to crypto exchanges for 24 hours. In addition,the CBA plans to impose an AUD 10,000 limit per calendar month on customerpayments towards cryptocurrency exchanges where it can ascertain that thepayments are intended for cryptocurrency purchases.
Theseactions are part of an array of initiatives intended to help customers mitigatethe risks associated with victims falling for scams.
JamesRoberts, the General Manager of Group Fraud Management Services at CommonwealthBank, acknowledged consumers' rising interest in cryptos and warned ofglobal scammers exploiting this trend.
“With theincidences of scams increasing and in many cases customers sufferingsignificant losses from being scammed, the introduction of 24 hour holds,declines and limits on outbound payments to cryptocurrency exchanges will helpreduce both the number of scams and the amount of money lost by customers,”Roberts commented.
The CBA willcontinue to monitor the effects of these scam response measures closely andwill undertake continuous reviews of their effectiveness.
Australia Limits Access toCryptocurrencies
A similarmove was made last month by another of Australia's largest banks, Westpac. Itannounced that it would block some cryptocurrency payments in order to limitcustomer losses. However, like the CBA, it did not specify which exchangesmight be involved.
Thesedecisions follow Binance Australia's, the local branch of one of the largest digitalassets exchanges in the world, announcement that customers would lose access todeposits and withdrawals in AUD after the payment company, Cuscal stopped providingits service.
Before thefinal date of deposit blocking, investors were panic-selling their Bitcoins onthe Australian platform, which made them available at up to 20% cheaper than oncompeting exchanges.
Binance isalso facing challenges in the United States. This week, US regulators haveinitiated a lawsuit against the platform, alleging that it has manipulatedtrade volumes to appear higher than they truly are. A distinct lawsuit isaddressing the issue of offering financial instruments that bear thecharacteristics of securities without appropriate regulations.
In aproactive move to enhance customer safety, the Commonwealth Bank (CBA) today (Thursday)announced it has implemented new measures aimed at protecting customers fromfraudulent activities tied to cryptocurrency exchanges.
Inpractice, this means that the bank will be able to block some outgoingtransfers to selected cryptocurrency exchanges. However, the institution hasnot specified which platforms may be specifically concerned.
In anattempt to minimize scam risks, from today onwards, the bank will decline orhold certain payments to crypto exchanges for 24 hours. In addition,the CBA plans to impose an AUD 10,000 limit per calendar month on customerpayments towards cryptocurrency exchanges where it can ascertain that thepayments are intended for cryptocurrency purchases.
Theseactions are part of an array of initiatives intended to help customers mitigatethe risks associated with victims falling for scams.
JamesRoberts, the General Manager of Group Fraud Management Services at CommonwealthBank, acknowledged consumers' rising interest in cryptos and warned ofglobal scammers exploiting this trend.
“With theincidences of scams increasing and in many cases customers sufferingsignificant losses from being scammed, the introduction of 24 hour holds,declines and limits on outbound payments to cryptocurrency exchanges will helpreduce both the number of scams and the amount of money lost by customers,”Roberts commented.
The CBA willcontinue to monitor the effects of these scam response measures closely andwill undertake continuous reviews of their effectiveness.
Australia Limits Access toCryptocurrencies
A similarmove was made last month by another of Australia's largest banks, Westpac. Itannounced that it would block some cryptocurrency payments in order to limitcustomer losses. However, like the CBA, it did not specify which exchangesmight be involved.
Thesedecisions follow Binance Australia's, the local branch of one of the largest digitalassets exchanges in the world, announcement that customers would lose access todeposits and withdrawals in AUD after the payment company, Cuscal stopped providingits service.
ADVERTIsem*nT
Before thefinal date of deposit blocking, investors were panic-selling their Bitcoins onthe Australian platform, which made them available at up to 20% cheaper than oncompeting exchanges.
Binance isalso facing challenges in the United States. This week, US regulators haveinitiated a lawsuit against the platform, alleging that it has manipulatedtrade volumes to appear higher than they truly are. A distinct lawsuit isaddressing the issue of offering financial instruments that bear thecharacteristics of securities without appropriate regulations.
