HSBC Australia Halts Crypto Exchange Payments Following $171M Scam
According to the latest details that surfaced, HSBC’s Australian wing has sent an email to its customers saying that it will begin blocking payments to crypto exchanges.
The bank had stated in the mail that it would begin on July 24. As per the report from Finance Magnets, the primary reason for the move is the rise in scams.
Key points:
- HSBC’s Australian wing will block payments to crypto exchanges.
- The bank began blocking the payments on July 24.
- The bank cited rising scams as the main reason.
- HSBC to block payments from credit cards and bank accounts.
In its email, HSBC stated that, “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.”
Also check out: Coinbase UK Faces $4.5 Million Fine Over High-Risk Customer Onboarding
HSBC referred to rise in investment scams as the reason
HSBC highlighted the rise in investment scams, where Australians lost up to $171 million. The bank asked the investors to find other ways to make crypto exchange payments.
However, the bank stated that it will still accept customer payments that come from the crypto exchanges.
Additionally, the bank apologized for the inconvenience caused by the decision. Taking inspiration, Bendigo Bank also followed suit and decided to block payments to crypto exchanges.
