Australian Bank: 40% of fraud cases are related to "cryptocurrency", emphasizing that restrictive measures are not suppressive regulation

Australia's Commonwealth Bank (CBA) Blockchain and Digital Assets Director Sophie Gilder explained details of the restrictions banks are placing on cryptocurrency exchanges during the Australian Blockchain Week forum. She pointed out that these measures are in response to the significant increase in cryptocurrency-related fraud cases in recent years, and major banks are all following suit and committing to reducing financial crime.

Australian Treasury and Multiple Banks: Cryptocurrency Scams "Unacceptably High"

According to the Australian Competition and Consumer Commission's data, Australians lost approximately $148.3 million in cryptocurrency investment scams in 2022, a 162.4% increase from the previous year, drawing attention from the Australian government and several local banks.

Cointelegraph reports that Sophie Gilder and Nigel Dobson, head of bank investment services at ANZ Bank, stated that data from the Australian financial crime watchdog shows that over 40% of current scams in Australia involve cryptocurrencies.

Recently, CBA followed the example of Westpac by imposing temporary suspensions, partial restrictions, or complete halts on payment services to certain cryptocurrency exchanges.

The Australian Treasury stated that these measures taken by the banks so far have been voluntary, driven by their consensus and determination to restrict the growing threats of cryptocurrency-related crimes. They added:

Emphasis on Not Targeting the Cryptocurrency Industry

In response to the aforementioned restrictions and recent investigations on cryptocurrency companies, Sophie Gilder clarified that these actions are not aimed at targeting the cryptocurrency industry and do not necessarily imply that centralized exchanges (CEX) will engage in criminal activities.

These are not industry-specific actions but conclusions drawn from a large amount of data, behavioral patterns, and identification of illicit activities. Similar operations have long been conducted on regular bank accounts as well.

He further expressed optimism towards the blockchain industry and noted that almost every bank in Australia has established digital asset teams, indicating their recognition that they "must" delve into this field.

Earlier in April this year, the Australian Securities and Investments Commission (ASIC) conducted a targeted review on Binance Australia, a subsidiary of Binance, and subsequently approved the revocation of its Australian Financial Services License for Binance Australia Derivatives responsible for derivative trading.

Shortly after, on May 18, Binance Australia had its fiat deposit function suspended by a third-party payment partner citing compliance reasons, demonstrating the gradual strengthening of regulatory oversight on cryptocurrency-related companies by Australian financial authorities.