Another major Australian bank has blocked transfers to Binance
Date: 2023-07-17 Author: Karina Ziganova Categories: BUSINESS
National Australia Bank (NAB) has decided to block payments to high-risk crypto exchanges, including Binance, due to tight regulatory controls
And you, NAB!
National Australia Bank (NAB), one of Australia's leading banks, will crack down on fraud and scams by blocking payments from being transferred to high-risk cryptocurrency platforms, including crypto industry heavyweight Binance exchange. This was announced on Monday, and this step is in line with the general trend of tightening the screws in the digital currency sector.
In an interview with Financial Review, the head of NAB's anti-fraud department, Chris Sheehan, did not name specific cryptocurrency exchanges that were banned. He only stressed that the initial ban will apply to "several" exchanges and may be expanded in the future.
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The former police officer also stressed that the bank is committed to complying with industry standards.
Recall that this news appeared after the Australian Securities and Investments Commission (ASIC) revoked the license of the Binance Australia derivatives exchange in April.
The noose around Binance's neck is tightening
NAB's decision is a factor of additional pressure on Binance, which is now under the scrutiny of regulators in several jurisdictions at once. Potentially, the exchange can expand its activities in other jurisdictions, but at the same time lose Australia as an important market.
Recall that NAB is by no means the first bank to impose restrictions on money transfers to the details of cryptocurrency exchanges. Earlier, the editors of BeInCrypto have already said that similar bans were introduced by two more large Australian banks, Westpac and Commonwealth Bank. Then, in the comments of representatives of banks, it was also noted that this set of measures was aimed at slowing down the growth of losses from fraud.
Even then, the Australian Financial Review reported that ANZ plans to follow suit. As a result, this policy limits Binance's ability to deposit and withdraw fiat money from local banks.
At the end of June, Binance also lost its local banking partner Cuscal, which provided payments via PayID. Then the Australian division of the crypto exchange was cut off from access to banking services without prior notice.
Consumer protection comes first
According to some studies, Australians are a popular target for many crypto scammers, which is partly due to the country's relatively high level of wealth. As we told back in March, the Australian financial services regulator demanded that local banks strengthen supervision over the crypto industry and check the crypto business for compliance with solvency requirements on a daily basis.
In an interview with Financial Review, Sheehan spoke in favor of joint efforts by banks, telecom operators, online platforms, customers and the government to prevent unpleasant incidents.
