HSBC Australia Will Block All Payments To Crypto Exchanges Going Forward

HSBC has announced that, starting July 24th, 2024, their Australian division will block payments to cryptocurrency exchanges, becoming the latest major bank to avoid the industry, citing concerns about scams.

Justifying The Decision

In an email to customers outlining new safety measures, HSBC Australia stated it will now prevent payments via bank accounts and credit cards to cryptocurrency exchanges to protect customers, the bank explained. To justify its decision, HSBC highlighted that Australians lost up to $171 million to investment scams in 2023.

While apologizing for the inconvenience, HSBC emphasized its priority of safeguarding customer funds. This move follows similar actions by various other Australian banks, all aiming to shield customers when it comes to scams and other kinds of potential fraud.

Amy-Rose Goodey, managing director of the Digital Economy Council of Australia, expressed surprise at the decision, underscoring broader concerns in the cryptocurrency community about increasing bank restrictions. HSBC clarified that it will continue accepting payments via cryptocurrency exchanges, maintaining regular banking services for its 1.5 million Australian customers across 45 branches.

Looking Elsewhere

Banks are often cautious or resistant towards cryptocurrencies due to concerns about regulatory compliance, financial stability risks, potential for fraud or scams, and competition with traditional banking services.

However, several other countries, including Switzerland, Singapore, Japan, and Malta, have established supportive environments for cryptocurrencies within their banking systems. These nations have implemented regulatory frameworks that accommodate blockchain and crypto businesses, with varying degrees of clarity and oversight to foster innovation and integration into financial markets.