Foreign Banks Withdraw Support from RISKY Exchanges. Impacting Crypto Sector's Transformation ( Australian )

 

Foreign Banks Withdraw Support from 'RISKY' Crypto

In response to the surge in financial scams involving cryptocurrencies, many traditional banks in Australia have decided to take measures to protect their customers. In response to rising scams and risks, National Australia Bank (NAB) and other major banks are blocking payments to crypto exchanges., which have been frequently associated with scam-related complaints. The Commonwealth Bank, Australia's largest lender, also recently announced freezing some crypto-related payments due to financial risks.

The increase in cryptocurrency-related scams has been alarming, with nearly 50 percent of scam funds reported to the Australian Financial Crimes Exchange in the past month being related to cryptocurrencies. This has left investors fearful and uncertain about the safety of their investments. NAB users alone have been alerted to scams that could result in losses of up to $184 million between March and July of 2023.

To combat this issue, NAB has implemented various measures to protect its customers. One of these measures includes introducing payment prompts and cracking down on spoofing to deter scammers. They have also taken action to block certain payments to high-risk cryptocurrency exchanges.

While the specific names of the exchanges affected by these measures remain unknown, popular platforms like Kraken, CoinSpot, CoinJar, and Cointree continue to operate in Australia.

The Australian government is also taking steps to safeguard crypto investors from financial risks. They are planning to introduce legislation to regulate crypto token mapping, enhance legal oversight over crypto transactions, and ensure user safety within the crypto space. This move comes after Australian crypto investors lost over $81.5 million to crypto scams between January and May of the previous year, according to a report by the Australian Competition and Consumer Commission (ACCC).

As part of their efforts to combat illegal money transfers through crypto assets, the Australian Federal Police established a dedicated unit last September. This unit's sole purpose is to identify and counter the activities of organized, international crime groups that use cryptocurrency platforms to swiftly send stolen money overseas.

Australian regulators have been actively focusing on strengthening oversight of crypto asset providers to ensure they fulfill their obligations to Australian consumers. The authorities aim to make it increasingly challenging for criminals involved in scams to exploit cryptocurrency platforms for their illegal activities.

In conclusion, the rise in cryptocurrency-related scams has prompted many Australian banks to withdraw support from risky crypto exchanges to protect their customers from financial harm. The Australian government is also taking steps to regulate the crypto sector and safeguard investors from potential risks associated with these investments. As the cryptocurrency landscape continues to evolve, it remains essential for investors to stay informed and exercise caution to mitigate potential risks.