Nikolas Sargeant
HSBC Australia has announced a suspension of payments to cryptocurrency exchanges starting July 24, citing customer protection concerns. The decision, revealed in emails circulated on social media platform X, aims to safeguard customers against potential fraud risks.
While the bank will cease processing payments to crypto platforms, it will continue to allow incoming transfers from these exchanges. HSBC advised customers seeking to make payments to crypto exchanges to "make alternative arrangements." The bank did not specify which exchanges would be affected by this policy.
This move aligns HSBC Australia with the country's "Big Four" banks—Commonwealth Bank, National Australia Bank, Westpac, and Australia and New Zealand Banking Group—which implemented similar restrictions about a year ago. All cited concerns over scams and risks associated with crypto trading.
HSBC justified its decision by referencing data from Australia's competition and consumer regulator, which reported that Australians lost up to $171 million to crypto-related investment scams in 2023.
Adding to the concern, Australia's financial intelligence agency recently warned of increasing money laundering risks through cryptocurrencies. The agency identified high vulnerabilities associated with digital currencies used for payments and predicted these risks would continue to grow. Crypto exchanges and digital assets used as stores of value were classified as medium-level money laundering risks, with expectations of increased risk over the next three years.
