HSBC Australia blocks payments to crypto exchanges

This action aligns HSBC with other major banks that have taken similar measures, citing concerns over scams. In a communication to customers on 24 July, HSBC Australia stated that it would block transactions to cryptocurrency exchanges that it deems potentially fraudulent, citing a need to protect customer funds. The bank referenced data from Australia's competition and consumer regulator, which indicated that Australians lost up to USD 171 million in investment scams in 2023. 

The bank acknowledged the inconvenience of this change but emphasised its commitment to protecting customer assets. HSBC's decision follows actions taken by Australia's major banks, including Commonwealth Bank, National Australia Bank (NAB), Westpac, and Australia and New Zealand Banking Group (ANZ), which implemented similar restrictions on payments to cryptocurrency exchanges over the past year. Bendigo Bank also adopted similar measures, citing the protection of customers from investment fraud.

Initial reactions 

Representatives from the Digital Economy Council of Australia (DECA) noted that DECA was not informed in advance of HSBC's decision. They expressed concern that HSBC's move reflects a broader trend of restrictive measures affecting the cryptocurrency sector, and they also emphasised the need for dialogue and improved regulatory frameworks to balance innovation with risk management. Representatives further highlighted that clearer and more progressive regulations could help combat scams while fostering innovation.  

Despite the new restrictions, HSBC will continue to process payments from cryptocurrency exchanges and maintain normal banking operations. According to Cointelegraph, HSBC Australia serves 1.5 million customers through 45 branches nationwide.