- HSBC Australia will block all customer payments to crypto exchanges as from July 24, 2024.
- The bank told customers in an email that the decision is due to rising cases of crypto related investment scams.
- A recent report suggested Australians lost $171 millin to such crypto scams in 2023.
HSBC Australia has begun blocking payments to crypto exchanges, citing rising cases of scams.
The bank told its customers that the new measure took effect on July 24, with all bank accounts and credit card payments to cryptocurrency exchanges blocked. At least six major banks in Australia currently block payments to crypto exchanges, Cointelegraph noted in a report.
Customer protection
HSBC Australia, like other major banks to take the step in the country, say the objective is to protect its customers.
Clients looking to make payments to crypto platforms will have to find alternative means, the bank wrote in the email.
“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 banking giant wrote.
The bank pointed to a recent report by the Australian competition and consumer regulator, ACCC, for its decision. According to the report, investment scams accounted for up to $171 million in losses for Australians in 2023.
HSBC Australia’s notification to its customers wasn’t the only major setback for crypto in the county on the day. Shortly after the bank’s move, another firm, Bendigo Bank, notified its clients of a similar move. Bendigo Bank also cited investment scams in crypto, asserting that its decision is in the best interest of customers and for their protection.
While HSBC Australia has blocked payments to crypto platforms, the bank will still process customers’ cryptocurrency payments from exchanges.