HSBC Australia, a subsidiary of one of the 10 largest banks in the world, announced that it will start blocking payments to cryptocurrency exchanges as of July 24, 2024. The bank cited protecting its customers from fraud as the primary reason for this action.
HSBC Australia outlined the new security measures in an email to customers on July 24. “As of July 24, 2024, HSBC will block payments that we believe were made to cryptocurrency exchanges from bank accounts and credit cards for your protection,” the bank said. said. The bank also advised its customers to look for alternative methods to make payments to these exchanges.
HSBC Australia justified its decision by citing data from Australia's competition and consumer regulator which revealed Australians lost up to $171 million in investment scams in 2023. While acknowledging the inconvenience this may cause, the bank stressed that its priority is to keep customer money safe.
Following HSBC's move, Bendigo Bank also decided to block payments to cryptocurrency exchanges, citing similar concerns about protecting its customers from investment fraud.
However, HSBC announced that it will continue to accept payments from cryptocurrency exchanges and other banking services will not be affected.
*This is not investment advice.