Commonwealth Bank Limits Crypto Payments Amid US-led Crackdown

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In addition to some outright bans, the CBA will impose a 24-hour transaction suspension on customers wishing to transfer money to crypto exchanges, as well as a monthly limit of $10,000.

We recognize there will be an impact on some people, but the scale of investment scams involving crypto exchanges is so large that we need to take strong action, Roberts said.

Around $700,000 of fraudulent money flows out of CBA accounts into crypto exchanges every day, as customers succumb to a growing number of financial frauds touted as crypto investment opportunities.

BTC Markets CEO Caroline Bowler hails governments’ decision to regulate cryptocurrencies. Oscar Colman

The ABC suspended its own in-app cryptocurrency trading launch last year when digital asset markets suffered a massive sell-off and uncertainty grew around exchange liquidity. The bank previously said it would allow customers to buy and sell cryptocurrency through its app, but stopped the pilot without announcing a new timeline.

Australian crypto exchanges have not been told of the CBA’s plans to restrict transfers, but BTC Markets managing director Caroline Bowler says there has been a slight increase in fraud recalls. the bank.

Ms Bowler also noted regulatory action in the United States this week, where allegations have been made against Binance and Coinbase for operating as unregistered exchanges. It is important to keep in mind that despite the importance of the SEC [Securities and Exchange Commission]they don’t regulate crypto in Australia, she said.

The different levels of knowledge of your clients’ governance have created a wedge between global exchanges like Binance and local players like BTC Markets.

Binance asks relatively few questions before allowing customers to start trading, whereas local exchanges have onboarding processes in place with controls similar to banks.

The industry here has worked with successive governments to draft a proportionate and appropriate regulatory framework in Australia, Ms Bowler said.

In addition to its exchange registration issues, Binance is facing new allegations of deliberate circumvention of US laws to solicit US crypto-trading clients.

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