HSBC Australia Blocks Customer Payments to Cryptocurrency Exchanges
From July 24, 2024, HSBC Australia announced that it would block all customer payments to cryptocurrency exchanges. This decision was made in response to the increasing number of cryptocurrency-related investment scams targeting customers. A recent report revealed that Australians lost $171 million to such scams in 2023.
Citing Rising Fraud Cases
HSBC Australia informed its customers through an email about the new measures that came into effect on July 24. Under these measures, all bank account and credit card payments to cryptocurrency exchanges were frozen. Notably, at least six major banks in Australia are currently taking similar actions to block payments to cryptocurrency exchanges.
Customer Protection Measures
Like other major banks, HSBC Australia stated that the primary aim of these actions was to protect its customers from falling victim to investment scams. Customers looking to make payments to crypto platforms will now have to explore alternative methods as direct payments are no longer supported.
According to a recent report from Australia’s competition and consumer regulator, investment fraud in the cryptocurrency space is on the rise, costing Australians significant amounts. In 2023 alone, it was estimated that Australians lost as much as A$171 million to such fraudulent schemes.
Following HSBC Australia’s move, another prominent bank, Bendigo Bank, also announced similar restrictions on customer payments to cryptocurrency exchanges. Both banks emphasized that their decisions were made in the best interests of their customers to protect them from potential financial losses.
Continued Support for Customer Cryptocurrency Payments
Despite blocking direct payments to cryptocurrency platforms, HSBC Australia clarified that it would continue to process customer cryptocurrency payments received from exchanges. This decision aims to balance customer convenience with the need to mitigate the risks associated with cryptocurrency investments.
Overall, the actions taken by HSBC Australia and other banks in the country reflect a growing concern over the prevalence of cryptocurrency-related scams and the importance of safeguarding customers’ financial interests.
