National Australia Bank (NAB) has taken action to safeguard customers from scams related to cryptocurrency exchanges. To combat the surge in payment-related scams, NAB blocked payments amounting to over $270 million between March and July. While the bank hasn’t specified the affected crypto platforms, it intends to apply the restrictions to “high-risk” exchanges.
NAB’s move follows similar actions by other major Australian banks, including Commonwealth Bank and Westpac. These institutions have also restricted payments to crypto exchanges, citing concerns about scam risks.
The United Kingdom has also seen tighter regulations on crypto currency purchases by banks. In 2021, the Financial Conduct Authority (FCA) warned banks of potential fines if they allowed customers to buy cryptocurrencies on unregulated exchanges. Consequently, many banks imposed limits on cryptocurrency transactions.
While NAB doesn’t facilitate direct cryptocurrency purchases through its platform, it permits customers to buy and sell cryptocurrency on ASIC-licensed digital asset exchanges.
The growing scrutiny of the cryptocurrency industry by regulators is evident in banks’ crackdown on crypto-related activities. Authorities are particularly concerned about the risks of cryptocurrency fraud, money laundering, and other illicit uses.
As the market evolves, it’s likely that more financial institutions worldwide will implement similar measures to protect their customers from potential scams and regulatory violations. However, it’s essential for regulators and banks to find a balanced approach that both protects consumers and fosters innovation in the crypto space.
Crypto Lending Platform Celsius Under Investigation by Regulators
