Jai Sahu
HSBC Australia has announced it will block customer payments to cryptocurrency exchanges starting July 24 due to concerns over customer protection.
HSBC Blocks Crypto Payments
In a July 24 email to customers, HSBC Australia detailed its “new safety measures,” stating: “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.” The email also advised customers to seek alternative methods for making payments to these exchanges.
HSBC defended its decision by referencing data from Australia’s competition and consumer regulator, which indicated that Australians lost up to $171 million in investment scams in 2023. The bank apologized for any inconvenience but emphasized that its top priority is the safety of customer funds.
Bendigo Bank Follows Suit
Following HSBC’s move, Bendigo Bank also decided to block payments to cryptocurrency exchanges, similarly citing the need to protect customers from investment scams.
Amy-Rose Goodey, Managing Director of the Digital Economy Council of Australia (DECA), mentioned that DECA was not informed in advance of HSBC’s decision. She told Cointelegraph that HSBC’s move highlights the ongoing challenges between Australian banks and the cryptocurrency sector.
Goodey described the action as part of a “concerning trend” of restrictions affecting the digital currency community. She stressed the importance of dialogue and improved regulatory frameworks that balance innovation with risk management, warning that without proper discussion, more Australians could lose their “financial right” to participate in the digital economy.
Goodey also mentioned that establishing “clear, fair, and forward-thinking regulations” would help banks and industry players combat scams without hindering innovation. She noted that DECA has made progress since 2023, including being added to the advisory board of the National Anti-Scam Center.
Continued Services from HSBC
HSBC clarified that it would still accept customer payments coming from cryptocurrency exchanges and that other banking services would continue as usual. HSBC Australia currently serves 1.5 million customers through 45 branches across the country.