The Commonwealth Bank of Australia (CommBank) has decided to block certain payments to some crypto exchanges beginning this week.
CommBank is the largest bank in Australia.
In a FAQ, CommBank said they are making these changes due to the risk of fraud:
“Interest in cryptocurrencies has been increasing and we’re seeing a growing number of customers losing funds to cryptocurrency scams. In other types of investment scams, customers think they are investing in particular investment categories other than crypto, however, the scammer arranges for the funds to be paid to a cryptocurrency exchange instead. The ACCC Targeting Scams report revealed over $220 million was lost to scammers through cryptocurrency in 2022.
With this figure expected to rise significantly in the year ahead, we’re implementing measures to help reduce the incidence of scams and fraud.”
CommBank said they will “decline or hold certain payments to all cryptocurrency exchanges.” Commbank did not mention any crypto exchanges by name.
Withdrawals will not be impacted.
The increased oversight arrives during a period of heightened regulatory scrutiny around the world as well as some jurisdictions crafting bespoke rules for the digital asset sector.
