Australian cryptocurrency exchange teams up with payment giant PayPal to combat strict local banking restrictions

Cointelegraph reports that the Australian exchange Independent Reserve has announced a partnership with the payment giant PayPal, allowing users to deposit funds directly from their PayPal wallets into their cryptocurrency accounts and withdraw funds using PayPal. This move is mainly in response to strict restrictions imposed by major banks in Australia on cryptocurrency trading and deposits.

PayPal Increases User Convenience for Deposits and Withdrawals

The Australian exchanges Independent Reserve and Bitcoin.com.au have announced a collaboration with PayPal to combat the increasing regulations imposed by local banks on cryptocurrency exchanges.

Users of the exchanges can now directly deposit fiat currency into their exchange accounts through their PayPal wallets and withdraw funds from the exchange to their PayPal wallets, with a daily deposit limit of $5,000.

Adrian Przelozny, CEO of Independent Reserve, explained that PayPal will provide Australian cryptocurrency investors with more convenient and unrestricted options.

He added that at least five major financial institutions in Australia have implemented strict restrictions on transactions and withdrawals for cryptocurrency exchange users. Among them, the restrictions imposed by the Commonwealth Bank are the strictest, limiting investor deposits to $10,000 per month.

Other measures include blocking payments deemed "high risk" or suspending deposits to cryptocurrency exchanges for other investors due to fraud risks.

As the first collaboration between PayPal and Asia-Pacific cryptocurrency exchanges, Przelozny praised their proactive approach to entering the cryptocurrency space:

It's great to see a company like PayPal going against the grain, recognizing the opportunities and future of the crypto industry, rather than treating it as a risk like other banks.

PayPal Bullish on Crypto Economy Development

PayPal Australia's General Manager Peter Cowan also expressed his eagerness to address the limitations and difficulties faced by local crypto investors in transferring funds and is optimistic about the future development of cryptocurrencies:

PayPal believes that currencies will become digital; it's just a matter of time, not if it will happen. They will bring innovation in fintech and improve economic opportunities and financial inclusion.

Previously, PayPal announced the launch of its own USD stablecoin, PYUSD, on August 7, which garnered widespread attention.

Australia's Crypto Regulation Becoming Stricter

In recent years, Australian authorities have been tightening regulations on crypto companies due to a significant increase in cryptocurrency-related fraud cases in the country.

The Australian Treasury and several major domestic banks stated during the Australian Blockchain Week:

The prevalence of cryptocurrency scams is "unacceptable" and requires collaboration between the government and the financial system to curb such behavior and maintain public trust in innovative technologies and systems.

Events include targeted reviews of Binance, revocation of licenses for derivative trading, and lawsuits against online broker eToro for non-compliant products.