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Australia’s Largest Bank Implements Measures to Combat Fraud, Temporarily Suspends Payments to Select Crypto Firms

The Commonwealth Bank of Australia (CBA), the country’s largest bank, announced on June 7 that it will temporarily suspend certain payments to specific cryptocurrency exchanges as part of a series of measures aimed at combating scams and protecting customers. However, the bank has not disclosed the names of the affected crypto trading operators.

Effective from June 8, the CBA will implement a 24-hour suspension on payments to certain crypto exchanges. Additionally, the bank plans to introduce a monthly limit of A$10,000 ($6,666) for transfers to crypto exchanges. The CBA spokesperson did not clarify whether these measures would apply to all crypto exchanges or only specific ones.

The General Manager of Fraud Management at CBA stated, “Customers who engage in transactions with cryptocurrency exchanges face a significant risk of falling victim to scams.” The bank’s decision to suspend payments is aimed at safeguarding customers from potential fraudulent activities associated with cryptocurrency transactions.

In a similar move, Westpac Bank has also suspended payments to certain crypto markets to mitigate losses stemming from scams. However, the specific service provider impacted by this decision was not disclosed.

The recent actions taken by Australian banks come in the wake of Binance Australia’s announcement to customers that they will no longer have access to Australian dollar deposits and withdrawals. This restriction is a result of Cuscal, a financial transaction service provider, suspending its support for such services.

By implementing these measures, Australian banks seek to enhance customer protection and address the risks associated with crypto transactions. As the popularity of cryptocurrencies continues to grow, banks are taking proactive steps to mitigate potential fraud and safeguard the interests of their customers.

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