HSBC Australia has slammed the brakes on cryptocurrency, blocking all customer payments to exchanges.
Bloomberg reported that HSBC’s Australian branch has notified customers that it will start blocking payments to cryptocurrency exchanges beginning July 24, citing concerns over scams. This move aligns HSBC with other major banks distancing themselves from the cryptocurrency industry.
“From 24 July 2024, HSBC will block payments from bank accounts and credit cards that we reasonably believe are being made to cryptocurrency exchanges, for your protection.”
HSBC Australia communicated in a recent email detailing new safety measures. Customers wishing to transact with cryptocurrency exchanges will need to find alternative methods.
HSBC based its decision on data from Australia’s competition and consumer regulator, revealing that Australians lost up to $171 million to investment scams in 2023. The bank apologized for the inconvenience but emphasized that safeguarding customer funds is its top priority.
This policy change follows similar actions taken over the past year by Australia’s “Big Four” banks—Commonwealth Bank, National Australia Bank, Westpac, and Australia and New Zealand Banking Group (ANZ)—and Bendigo Bank, all citing the need to protect customers from investment scams.
Amy-Rose Goodey, managing director of the Digital Economy Council of Australia (formerly Blockchain Australia), told Cointelegraph they were not informed in advance of HSBC’s decision. Goodey remarked that this decision highlights ongoing challenges between Australian banks and the cryptocurrency sector, representing a worrying trend of restrictions impacting the digital currency community. She emphasized the need for dialogue and improved regulatory frameworks that support innovation while addressing potential risks effectively.
Goodey cautioned that without open dialogue, more Australians risk being excluded from the growing digital economy. She advocated for clear and balanced regulations to combat scams without stifling innovation. Meanwhile, the banking industry has made strides in anti-scam efforts with the Digital Economy Council of Australia joining the National Anti-Scam Center advisory board.HSBC Australia, which has 1.5 million customers across 45 branches, clarified that its recent decision to block payments to cryptocurrency exchanges won’t impact other banking services.
