Bendigo Bank of Australia has recently entered the list of banks that have stopped crypto payments while operating within the country’s jurisdiction. In this respect, the banking platform has supported its action of stopping the “high-risk crypto payments” to shield consumers from likely investment scams. The respective announcement from Bendigo is witnessed following analogous moves taken by the other prominent banking institutions in the country.
Australian Bendigo Bank Imposes a Blanket Ban on Payments Done with Crypto
They take into account National Australia Bank, Commonwealth Bank, and Westpac. As per the bank, this development attempts to fight fraudulent transfers, taking into account the ones that are carried out with cryptocurrency. Even though there are no particular details regarding what exchanges or transfers will be impacted, this certainly poses an obstruction to the increasing adoption of crypto assets within the country.
The banking institutions that have decided to stop payments with crypto assets have mentioned that the purpose of this move is to eliminate fraudulent transfers. Nonetheless, there is sufficient reason to say that the respective move is not particularly the way out. On the other hand, it may turn out to be considerably counterproductive.
Keeping that in view, the malicious actors will start looking for some other means by which they can perform their illegal operations. In the meantime, the prohibition imposed by the banking entities will contribute to the frustration concerning the activities carried out by the crypto exchanges working within the jurisdiction. In addition to this, the respective thing may also stiffen the advancement of the crypto market within Australia.
The authorities in the country have paid a lot of attention to this issue. Subsequently, a statement was issued by the country’s Department of Treasury at the start of June this year. As pointed out in that statement, the increasing trend of banking institutions terminating links to the crypto exchanges within the jurisdiction could pave the way for many unwanted consequences.
The Authorities Intend to Resolve the Issue of De-Banking Trends
As a result of this, there are chances that the country’s crypto industry could become less transparent. While discussing the debanking as well as the outcomes thereof, the statement brought to the front that the authorities are well aware of the gravity of de-banking along with recognizing that delaying the actions to deal with this matter will suffocate innovation and competition within the world of financial services.
The statement added that this may also result in pushing the businesses underground. Though the authorities require operating on reforms in the policy to counter such debanking trends, there is a significant requirement that they operate on developing a thorough regulatory agenda for the crypto market to assist complying crypto exchanges operating within the country. This can potentially contribute to the growth of crypto among the common masses.
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