The National Australia Bank (NAB) is the latest major bank to issue an end to trading on some cryptocurrency exchanges, claiming a significant risk of fraud.
National Australia Bank to Safeguard from Fraud
According to an announcement made on July 17, the NAB has announced a number of new measures to safeguard clients from fraud as a part of its “bank-wide scam strategy.”
NAB will also implement bans on “some cryptocurrency platforms” to help shield users from scams in addition to stopping millions in payments between the months of March and July 2023.
50% of Scams in Australia Connected to Crypto
The claim that roughly 50% of scam money reported in Australia are connected to cryptocurrencies was reiterated by NAB in the release, which followed a trend of regional financial institutions to repeat this claim.
The statement by the bank reads: “More broadly, cryptocurrency scams are one of the fastest-growing security threats, with Australians losing more than $221 million to them last year.”
Crypto Exchanges to Suffer from Bank Blocks
The NAB chose not to identify the bitcoin exchanges that are most likely to suffer bank blocks.
Chris Sheehan, NAB executive for business operations and fraud, just pointed out that the recently implemented blocks will have an impact on “high-risk” sites at which “scams are more prevalent.”
He stated that “these scammers are part of organized, transnational crime groups. Increasingly, we’re seeing them use cryptocurrency platforms to send stolen funds quickly and often overseas.”
Action Against Binance
As reported by local media, Sheehan warned that NAB’s crypto bans could have consequences on the Australia operations of Binance cryptocurrency exchange. “Our approach is going to be consistent with the rest of the industry,” the CEO reportedly stated. Notably, as reported by TheCoinRise, on July 4, Australian financial markets officials searched Binance’s headquarters in the country.
Back in March, it looked like the Australian government would take its time adopting new cryptocurrency legislation. Internal Treasury Department documents stated that new regulations were going to require over a year to finalize. The delay was attributed to the defunct FTX exchange, which resulted in the loss of tens of thousands of Australians’ funds.