Commonwealth Bank, one of Australia’s Big Four banks announced on June 8 that it would reject or block “certain payments” to crypto exchanges.
The move comes after Westpac, Australia’s oldest bank, banned payments to crypto exchanges in May.
Effective June 8, the Commonwealth Bank will freeze or freeze “certain payments” to crypto exchanges for 24 hours. In addition, “in the coming months,” users of the bank will face an AUD 10,000 ($6,650) monthly limit on crypto exchange payments.
The bank explained that the ban protects customers from the risk of scams associated with making payments to crypto exchanges. However, the press release did not clarify what is meant by “certain payments” or which exchanges would be affected.
James Roberts, Commonwealth Bank’s general manager of Group Fraud Management Services, said the bank’s payment restrictions would help reduce incidents and the amount of money lost by users, amid a growing number of scams. While the measures will not eliminate the risks, “they are part of a series of initiatives designed to help customers reduce the risk of falling victim to a scam,” he said.
The Commonwealth Bank said it would review the impact of the payment restrictions on an ongoing basis.
The payment ban marks a significant shift for the bank, which previously aimed to launch its crypto-trading services with Gemini and Chainalysis. Partnerships The Commonwealth Bank App was created to provide crypto trading services to millions of users.
However, in May 2022The project was put on hold after regulators denied approval for the venture.