AUSTRALIA LIMITING CRYPTO CURRENCY

Australia's largest lender is set to implement a monthly cap of 10,000 Australian dollars ($6,663) on payments directed to cryptocurrency exchanges. The Commonwealth Bank of Australia (CBA) recently announced that certain transfers will be subject to a 24-hour hold or possible rejection.

The move comes as scams posing as legitimate investment opportunities or channeling funds into cryptocurrency exchanges continue to proliferate worldwide. James Roberts, the General Manager of Group Fraud Management Services at CBA, cited these concerns as the driving force behind the upcoming restriction.

According to a report, Australians fell victim to scams amounting to at least 3 billion Aussie dollars in 2022, marking an 80% increase from the previous year. Cryptocurrency has played a significant role in this alarming trend, as highlighted by the Australian Competition and Consumer Commission (ACCC).

CBA's latest announcement further adds to the challenges faced by the cryptocurrency trading industry in Australia. The banking sector has been imposing stricter measures on fiat-to-crypto transfers, primarily due to the associated risks of scams.

In a similar vein, Westpac Banking Corp. of Australia recently initiated trials of enhanced customer protections for select cryptocurrency payments, aimed at mitigating scam-related losses. Furthermore, Binance Australia acknowledged its inability to accept deposits through the Australian payment gateway Cuscal, with the latter emphasizing its commitment to safeguarding Australians against financial crimes and scams.

In late May, a Bloomberg report revealed that users of Binance Australia were selling bitcoin and other cryptocurrencies at discounted rates compared to other exchanges in the country. This price discrepancy was attributed to the decision by the popular Australian payment provider Payid to cease processing Australian dollar withdrawals for Binance's customers.

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