Australia’s banking industry has taken a stand against high-risk cryptocurrency transactions, with Bendigo Bank being the most recent to implement this policy. These measures are part of a broader initiative to safeguard customers from potential investment scams.
Bendigo Bank Joins the Fray
Bendigo Bank, one of Australia’s largest financial institutions, has joined the likes of National Australia Bank, Westpac, and Commonwealth Bank in blocking high-risk cryptocurrency transactions. This move aims to prevent fraudulent transactions often associated with cryptocurrencies.
The Question of Debanking
The banks that have imposed these restrictions claim their primary goal is to reduce fraudulent transactions. However, there is substantial evidence to suggest that this measure may not be the ultimate solution and could, in fact, be counterproductive.
The Rising Demand for Cryptocurrency in Australia
The demand for cryptocurrencies in Australia has been on the rise. Recent reports revealed that almost 1 in 4 adults in Australia own crypto. Furthermore, there has been a significant increase in the trading volume on exchanges and the daily active users of crypto wallet apps.
While the authorities must work on policy reforms to curb these debanking trends, there is a greater need for them to work on creating a comprehensive regulatory framework for the crypto industry. This will help regulated crypto exchanges serve the growing crypto public better.