HSBC Australia has warned clients that they will no longer process transactions related to crypto exchanges starting July 24, citing the issue of customer safety. These safety issues were highlighted through emails sent out on X, suggesting that this was the reason for the decision.
Nevertheless, the bank clarified that customers could continue accessing coins from exchanges in their accounts.
“If you wish to make payments to cryptocurrency exchanges, you’ll need to make alternative arrangements,”
The bank did not give a list of exactly which exchanges would be affected by the restrictions.
HSBC Australia Begins to Regulate Crypto Transactions
HSBC Australia justified this, which was anchored by information from Australia’s competition and consumer regulator, which pointed to up to $171 million lost to Australians in crypto-related investment scams in 2023.
HSBC’s move to stop facilitating payment to cryptocurrency trading platforms is consistent with actions implemented by Australia’s “Big Four” banks in the prior year.
Some of the firms that have restricted access to these trading platforms include Commonwealth Bank, National Australia Bank, Westpac, and Australia and New Zealand Banking Group, citing risks of scams and dangers involved in the trading of cryptocurrencies as their reasons.
Australia Gets Worried over Rising Threat of Crypto Money Laundering
Australia’s financial intelligence agency has warned about the increasing money laundering associated with cryptocurrencies, pointing out that the risks are particularly high if digital currencies are used for payments. They believe that these risks will experience further aggravation in the coming years.
Crypto trading platforms and digital currencies including those for value storage are estimated to pose a moderate risk in money laundering with future estimates pointed that the risk could increase in the next 3 years.
