HSBC Australia Blocks Transactions to Crypto Exchanges
Date: 2024-07-26 Author: Henry Casey Categories: IN WORLD
From July 24, 2024, the Australian division of the international bank HSBC will block outgoing transactions to cryptocurrency exchanges. This decision of the bank became known from a letter to clients, which was distributed online.
In its letter, HSBC explained that blocking payments is aimed at protecting clients. The bank indicated that payments from accounts and cards that are sent to crypto exchanges will be blocked, but transactions to withdraw funds from such platforms to client accounts will remain available. Other transactions will not be affected by this change.
The bank's decision is related to the report of the Australian Competition and Civil Rights Commission (ACCC), according to which in 2023, Australians lost $171 million as a result of financial fraud, mainly in the crypto sphere. In this regard, HSBC apologized to customers for any inconvenience this may cause and emphasized that customer safety is its top priority.
Reaction and Perception
An official notification about the blocking of transactions appeared on the website of the Australian division of HSBC. According to local media, four more financial counterparties have introduced similar restrictions - CBA, NAB, Westpac and ANZ.
Managing Director of the Digital Economy Council of Australia (DECA) Amy-Rose Goody noted in a comment to Cointelegraph that HSBC's decision was unexpected and worrying. She expressed concern that such a trend could negatively affect the cryptocurrency industry in Australia.
Despite the restrictions, HSBC generally supports the cryptocurrency industry. In September 2023, the bank announced a partnership with the FCF Pay service, giving customers the opportunity to repay loans with cryptocurrency, including Bitcoin.
Thus, HSBC Australia's decision to block transactions on crypto exchanges demonstrates growing concerns about customer security in the context of the rise in financial fraud in the cryptocurrency space.
