Canberra, Thursday, July 25, 2024- HSBC Australia has abruptly blocked all customer transactions to cryptocurrency exchanges, citing a surge in scam activity.
The move, which took effect on July 24, 2024, restricts both bank transfers and credit card payments to crypto platforms.
The bank claims the decision is to protect customers from financial losses. The bank points to data from the Australian Competition and Consumer Commission (ACCC) indicating investment scams, primarily involving crypto, accounted for $171 million in losses.
However, critics noted the ACCC’s April 2024 report shows total scam losses in Australia were $2.7 billion, with crypto scams representing only a fraction of that figure.
The report also highlights a 13% decrease in overall scam losses compared to the previous report.
This has led some to question the effectiveness of HSBC’s blanket ban, suggesting education initiatives might be a more appropriate approach to combatting crypto scams.
Additionally, some reports said that the timing seemed peculiar as global crypto adoption is on the rise, with institutions increasingly investing in crypto-related funds.
The move by HSBC significantly restricts Australian residents’ options for transferring funds to crypto exchanges.
Currently, ING and St.George Bank remain the only major banks in the country that haven’t implemented limitations on crypto transactions.
