On top of transfer restrictions, the bank also plans to implement a 10,000 Australian dollar monthly cap on digital asset purchases.
Australia's leading bank, Commonwealth Bank (CBA), has announced plans to halt or decline payments directed toward cryptocurrency exchanges to counteract scams.
According to the announcement shared by Commonwealth Bank on June 8th, the CBA will either reject or impose a 24-hour freeze on "certain payments to cryptocurrency exchanges."
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A CBA spokesperson remained tight-lipped on the specifics of the payment methods that will face the block or delay, justifying the secrecy to prevent potential scammers from bypassing the new protocols.
Furthermore, CBA announced plans to implement a monthly cap of 10,000 Australian dollars (equivalent to $6,650) for transfers to cryptocurrency exchanges intended for digital asset purchases in the forthcoming months.
From today, CBA will decline or hold for 24 hours certain payments to cryptocurrency exchanges. In coming months the Bank will also introduce $10,000 limits in a calendar month where the Bank can identify the customer payments are to exchanges for cryptocurrency purchases.
James Roberts, the General Manager of Fraud Management Services at CBA, expressed concern over the utilization of burgeoning crypto interest by global scammers.
Consumer interest in cryptocurrencies has been increasing and unfortunately scammers globally are capitalising on this trend and masquerading as legitimate investment opportunities or diverting funds into cryptocurrency exchanges.
CBA's decision comes at a crucial time as two significant global crypto exchanges face growing legal pressures and another key Australian bank, Westpac, restricts dealings with crypto exchanges.
Despite the stark change in stance, which comes less than two years after the bank's plan to kickstart crypto trading services via its CommBank app in November 2021, the bank maintains an open mind. It mentioned that the newly adopted measures are under continuous evaluation, and it will analyze the impact of such decisions.
The move taken by Australia's largest bank is a stark reminder of the pressing need for robust regulatory frameworks in the crypto arena.
In other Australia-related news, the country has recently completed its first-ever foreign exchange (FX) operation using eAUD, a contender for the national digital currency.
