Due to concerns over the risk of scams, Australia\u2019s largest bank, Commonwealth Banks (CBA), has recently announced the temporary delay of certain payments associated with crypto exchanges.<\/p>\n
This decision arose after the United States Securities Regulator (SEC) sued two major global exchanges, Coinbase and Binance. This comes just a few weeks after another major Australian bank, Westpac, banned customers from transacting with crypto exchange Binance.<\/p>\n
Commonwealth Bank Combat Scams, Prioritizing Customer Protection<\/p>\n
On June 8, CBA disclosed its intention to decline or place a 24-hour hold on \u201ccertain payments to crypto exchanges.\u201d Nevertheless, the bank has yet to specify which crypto exchanges or payment types would be impacted by these new measures.<\/p>\n
Related Reading: Ripple CEO Blasts SEC Chair For Anti-Innovation Stance, XRP Bulls Remain Optimistic<\/a><\/p>\n According to a statement, CBA claimed<\/a> that the measures they\u2019ve introduced safeguard their clients from scams associated with making payments to crypto exchanges.<\/p>\n The bank added that customers sending funds to crypto exchanges to purchase cryptocurrencies will have a monthly limit of AUD 10,000 ($6,650).<\/p>\n The general manager of CBA\u2019s fraud management services, James Roberts, said;<\/p>\n Consumer interest in cryptocurrencies has been increasing, and unfortunately, scammers globally are capitalizing on this trend and masquerading as legitimate investment opportunities or diverting funds into cryptocurrency exchanges.<\/p>\n James further emphasized that the limits on outbound payments to crypto exchanges and the 24-hour holds will help fight the number of scams and money lost by customers.<\/p>\n CBA said continual evaluation and monitoring would be conducted to assess the impacts of these scam response measures.<\/p>\n This recent security measure marks a significant reversal from its previous plans. Notably, in November 2021, the bank introduced crypto trading services through its CommBank app, holding millions of users.<\/p>\n During that period, the bank\u2019s CEO, Matt Comyn, acknowledged the associated risks but emphasized the greater risks of not participating.\u00a0 He stated<\/a> that \u201cThe sector and the technology [isn\u2019t] going away anytime soon.\u201d<\/p>\n Uncertain Future for Crypto Exchange Binance Australia Services Following De-banking<\/p>\n Amid the ongoing global de-banking of crypto businesses, Binance users in Australia now face limited options for purchasing cryptocurrencies.\u00a0<\/p>\n According to Binance<\/a>, starting from 5:00 pm local time on June 1, bank transfers for fiat on-ramps and off-ramps have been suspended in Australia, including trading for Australian dollar (AU$) pairs.<\/p>\n The recent suspension of deposits and withdrawals is connected to previous events that have affected Binance in Australia.<\/p>\n In February, Binance\u2019s local derivatives division informed users<\/a> that specific positions and accounts would be closed for those who did not meet the criteria to be classified as wholesale investors.<\/p>\n According to the law, a wholesale investor has sufficient capital to invest in higher-risk and more speculative assets. This investor category is also called an institutional or accredited investor.\u00a0<\/p>\n To qualify as a wholesale investor in Australia, one must possess net assets of at least $2.5 million or have an annual gross income of at least $250,000.<\/p>\n Notably, a report published<\/a> by Binance in July of 2022 clearly states that the derivatives products are strictly for Australian wholesale clients.<\/p>\n However, after Binance closed non-compliant accounts, local regulators initiated a \u201ctargeted review\u201d of the exchange\u2019s local derivatives operations.<\/p>\n On April 6, the Australian Securities and Investment Commission (ASIC) revoked<\/a> the Binance Australian Derivatives license.<\/p>\n Featured image from Pixabay and chart from Tradingview.com<\/p>","protected":false},"excerpt":{"rendered":" <\/p>\n Due to concerns over the risk of scams, Australia\u2019s largest bank, Commonwealth Banks (CBA), has recently announced the temporary delay of certain payments associated with crypto exchanges.<\/p>\n This decision arose after the United States Securities Regulator (SEC) sued two major global exchanges, Coinbase and Binance. This comes just a few weeks after another major Australian bank, Westpac, banned customers from transacting with crypto exchange Binance.<\/p>\n Commonwealth Bank Combat Scams, Prioritizing Customer Protection<\/p>\n On June 8, CBA disclosed its intention to decline or place a 24-hour hold on \u201ccertain payments to crypto exchanges.\u201d Nevertheless, the bank has yet to specify which crypto exchanges or payment types would be impacted by these new measures.<\/p>\n Related Reading: Ripple CEO Blasts SEC Chair For Anti-Innovation Stance, XRP Bulls Remain Optimistic<\/a><\/p>\n According to a statement, CBA claimed<\/a> that the measures they\u2019ve introduced safeguard their clients from scams associated with making payments to crypto exchanges.<\/p>\n The bank added that customers sending funds to crypto exchanges to purchase cryptocurrencies will have a monthly limit of AUD 10,000 ($6,650).<\/p>\n The general manager of CBA\u2019s fraud management services, James Roberts, said;<\/p>\n Consumer interest in cryptocurrencies has been increasing, and unfortunately, scammers globally are capitalizing on this trend and masquerading as legitimate investment opportunities or diverting funds into cryptocurrency exchanges.<\/p>\n James further emphasized that the limits on outbound payments to crypto exchanges and the 24-hour holds will help fight the number of scams and money lost by customers.<\/p>\n CBA said continual evaluation and monitoring would be conducted to assess the impacts of these scam response measures.<\/p>\n This recent security measure marks a significant reversal from its previous plans. Notably, in November 2021, the bank introduced crypto trading services through its CommBank app, holding millions of users.<\/p>\n During that period, the bank\u2019s CEO, Matt Comyn, acknowledged the associated risks but emphasized the greater risks of not participating.\u00a0 He stated<\/a> that \u201cThe sector and the technology [isn\u2019t] going away anytime soon.\u201d<\/p>\n Uncertain Future for Crypto Exchange Binance Australia Services Following De-banking<\/p>\n Amid the ongoing global de-banking of crypto businesses, Binance users in Australia now face limited options for purchasing cryptocurrencies.\u00a0<\/p>\n According to Binance<\/a>, starting from 5:00 pm local time on June 1, bank transfers for fiat on-ramps and off-ramps have been suspended in Australia, including trading for Australian dollar (AU$) pairs.<\/p>\n The recent suspension of deposits and withdrawals is connected to previous events that have affected Binance in Australia.<\/p>\n In February, Binance\u2019s local derivatives division informed users<\/a> that specific positions and accounts would be closed for those who did not meet the criteria to be classified as wholesale investors.<\/p>\n According to the law, a wholesale investor has sufficient capital to invest in higher-risk and more speculative assets. This investor category is also called an institutional or accredited investor.\u00a0<\/p>\n To qualify as a wholesale investor in Australia, one must possess net assets of at least $2.5 million or have an annual gross income of at least $250,000.<\/p>\n