Australia's Top Banks Will Not Prohibit Cryptocurrency Purchases

Australia’s leading banks have announced that they are not planning to block their customers account from buying Bitcoin and other cryptocurrencies. This differs from the approach taken by the UK based Lloyds Banking Group and US banks JP Morgan, Bank of America and Citi. Recently the major US banks have announced that they will ban crypto purchases through credit cards. They share a common sentiment that with the current craze surrounding crypto trading, investors might end up with much higher loss than what they can afford. In addition, intruders stealing crypto cards might be utilizing it to their unnecessary benefit of converting fiat currencies into decentralized virtual assets. As a result, they can possibly utilize it for illegal activities of money laundering or even terror funding. Lloyd’s spokesperson stated: “ACROSS LLOYDS BANK, BANK OF SCOTLAND, HALIFAX AND MBNA [THE BRAND NAME UNDER ITS CORPORATE UMBRELLA], WE DO NOT ACCEPT CREDIT CARD TRANSACTIONS INVOLVING THE PURCHASE OF CRYPTOCURRENCIES.” ANZ And Westpac’s Reply According to the report published by ABC news, ANZ does not forbid customers who purchase virtual or cryptocurrencies or accepting them as a form of payment. Other banks that continue to allow credit card holders to purchase cryptocurrencies are Westpac and Commonwealth Bank of Australia. ANZ’s representative stated: “We monitor transactions for unusual behavior to protect against possible fraud and in line with our regulatory responsibilities.” A representative from Westpac, Australia’s second-largest bank by marketplace capitalization further stated: “We currently have no restrictions on credit card holders to purchase cryptocurrency.” However, National Australia Bank gave the hint that a number of restrictions should be imposed on ‘some card transactions’ to trim down client risks. Hardline Stance Australian Securities And Investments Commission (ASIC) advises that, as most of the digital currency exchange platforms are usually not regulated, clients may not be protected or have any legal option if the platform fails or it is being hacked,” National Australian Bank’s representative said. “We take the protection of our customers’ information and financial records very seriously.” Australia is insisting to legalize fresh guidelines for crypto exchanges to take operators under the purview of AUSTRAC which is the financial intelligence agency of Australia. Britain’s leading credit card issuer Barclays that has a market share of around 27% through its Barclaycard brand allows purchasing Bitcoin and other cryptocurrencies through credit cards as well. “We regularly review our security for our customers as a responsible bank and lender, and are keeping this stuff under close review”. At the present UK patrons can utilize both their Barclays debit card and Barclaycard credit card to buy Bitcoin and another cryptocurrency legally.” The second largest bank of Spain BBVA has also stated that there is no restriction regarding crypto purchases.