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Australia’s Bendigo Bank has become the fourth major bank in the country to announce blocks on “high-risk crypto payments,” citing customer protection from investment scams as the reason. The new rules, implemented on July 31, introduce friction to certain instant payments made to crypto exchanges. According to Jason Gordon, the bank’s head of fraud, the measures are aimed at combating fraudulent payments and enhancing security for its 2.3 million customers. 
Bendigo Bank has not disclosed specific details about the factors used to identify high-risk transactions but stated that certain instant crypto transactions would be blocked. The bank also declined to reveal the affected exchanges due to security concerns. This move follows similar actions taken by three of Australia’s Big Four banks: Commonwealth Bank, (NAB), and Westpac. 
Chainalysis’ APAC Policy Head Chengyi Ong warned that blocking crypto payments may not deter criminals, and uncertainty over banking access could drive exchanges and users away from the country’s jurisdiction. 
Dr. Aaron Lane, Senior Lecturer at the RMIT Blockchain Innovation Hub, advised that banks should work collaboratively with exchanges for consumer protection, rather than adopting a broad stance against the entire crypto industry. He stressed that debanking should be reserved for severe and unacceptable risks on an individual basis. 
However, Australia has been deliberating on crypto-specific regulations for over three years, prompting calls for lawmakers to expedite the process. The Department of the Treasury also stated in June, echoing concerns about stifling financial services competition and innovation and driving businesses to operate exclusively in cash. 
Previously in a <a href="https://news.todayq.com/national-australia-bank-takes-a-stand-against-crypto-scams-with-bold-exchange-blocks/" rel="noopener noreferrer nofollow">report</a> by Todayq News on July 17, 2023, National Australia Bank (NAB) had implemented measures to block certain cryptocurrency platforms to protect customers from scams. This move also targets high-risk platforms frequently used by organized, transnational crime groups to quickly send stolen funds overseas. Although specific exchanges were not disclosed, Binance may be among them, following actions taken by other major Australian banks like Westpac and Commonwealth Bank. NAB’s decision aligns with industry practices to safeguard customers from potential risks associated with these platforms. 
These measures are taken by the majority of banks because Crypto-related scams surged in Australia, accounting for almost half of the reported scams, resulting in losses of $221 million last year. Urgent action is needed to tackle this escalating security threat, as 40% of Australians prioritize enhanced protection over faster payments. 
© Todayq News

Bendigo Bank joins major Australian Banks in blocking ‘high-risk Crypto payments’

Todayq News

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