- Bendigo Bank implemented blocks on “risky” crypto transactions.
- Australian banks have taken a firm stance on crypto.
- Legislation in the region is beginning to take shape.
Australia has become more actively involved in crypto and its regulation in 2023. With crypto gaining momentum in the region, banks are not sitting idly by and have rushed to seize the reins of proactive measures.
Following the footsteps of major players in the country’s financial sector, including Commonwealth Bank, National Australia Bank (NAB), and Westpac, esteemed Australian financial institution Bendigo Bank has taken what it sees as a significant step in bolstering consumer protection for crypto payments.
Bendigo Bank’s Approach
In alignment with the principles outlined in The Digital Assets (Market Regulation) Bill 2023, Bendigo has moved to block “high-risk crypto payments.”
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On July 31, 2023, the bank updated its policies concerning instant payments to crypto exchanges. Jason Gordon, the head of the fraud department, elaborated that this move adds “some friction to certain genuine payments.”
The measure is designed to safeguard its 2.3 million customers from potential investment scams and fraudulent activities observed in the cryptocurrency space.
Crypto’s on a Roller Coaster in the Land Down Under
In Australia, where many banks have been blocking payments to crypto exchanges, NAB stood out as a pioneer by launching plans for the AUDN stablecoin in January 2023, becoming Australia’s second major financial institution to do so.
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NAB eventually distanced itself from the crypto realm and recently announced restrictions on payments to crypto exchanges, following the example set by other cautious financial players in the region. Despite the strict measures, NAB has yet to reveal which crypto platforms will be affected.
On the other hand, Senator Andrew Bragg made a pivotal move in Australia’s cryptocurrency industry earlier this year by introducing ‘The Digital Assets (Market Regulation) Bill 2023.’
The proposed legislation outlines comprehensive standards for the sector to protect consumers and promote investor confidence by implementing three licensing permits for exchanges, custody services, and stablecoin issuance.
On the Flipside
- In June, the Department of the Treasury issued a cautionary statement emphasizing the potential consequences of unresolved debanking, such as stifling competition and hindering innovation in the financial services sector.
- The Treasury also acknowledged the risk of driving businesses to operate exclusively in cash or through underground channels.
Why This Matters
Bendigo Bank shows commitment to consumer protection amidst the growing popularity of cryptocurrencies. The move to block high-risk crypto payments follows a trend set by other major banks in Australia, illustrating the industry’s collective efforts to address potential risks and fraudulent activities.
To know more about Commonwealth Bank becoming the first to offer crypto services to its customers, click here:
To learn more about regulations of Crypto rules in Canada, click here:
Canada’s Financial Regulator Proposes Rules for Crypto Exposure
