In an unprecedented move, the National Australia Bank (NAB) has taken a robust stand against cryptocurrency fraud, blocking transactions to several high-risk digital currency exchanges, including Binance, a leading player in the field. This step aligns with the escalating regulatory scrutiny the digital currency sector faces worldwide.
National Australia Bank Wages War Against Cryptocurrency Fraud
This move arrives swiftly on the heels of the Australian securities regulator’s decision to revoke Binance Australia’s financial services license. This latest development intensifies the pressure on Binance, which has already been scrutinized across multiple jurisdictions. Despite this setback, the cryptocurrency exchange still has the potential to expand into other markets, albeit at the cost of losing a significant stake in the Australian market.
Chris Sheehan, NAB’s Head of Fraud, opted for discretion, refraining from publicly naming the targeted digital currency exchanges. Nevertheless, he confirmed that the initial ban would affect “several” exchanges, potentially extending in the future. Sheehan, a former police officer, underscored the bank’s objective of upholding industry standards, demonstrating a commitment to customer safety.
Australia’s Banking Industry Follows Suit
In a show of industry-wide solidarity, Westpac and Commonwealth Bank have initiated similar measures to National Australia Bank, blocking payments to Binance as the Australian Financial Review reported. ANZ Bank is also expected to implement corresponding actions, collectively hampering Binance’s capacity to facilitate deposits and withdrawals through local banks.
Binance also experienced a setback when it severed ties with its local banking partner, Cuscal. That came after the Australian Securities and Investment Commission (ASIC) rescinded Binance’s local derivatives license, further complicating the crypto giant’s operations in Australia.
Global Impact on Binance
On the global front, the US Securities and Exchange Commission (SEC) alleged that Binance and its CEO, Changpeng Zhao, knowingly contravened laws and operated an unauthorized exchange. These developments signal a challenging path for Binance in domestic and international markets.
Interestingly, the Commonwealth Bank of Australia (CBA), despite being the first Australian bank to announce crypto-services, quickly reversed its decision post-announcement, emphasizing the volatility of the crypto sector.
National Australia Bank Concerned Over Rising Crypto Scams
In response to escalating losses due to cryptocurrency scams, Australian banks are adopting stricter regulations. The move follows the UK’s lead in instituting a reimbursement procedure for defrauded customers.
On June 1, Binance announced it would cease AUD deposits and withdrawals via bank transfer for Australian users. The decision came after Binance lost access to Australian dollar transfers through its PayID payment portal in May as banks tightened payment options.
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