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With its latest move, Australia's Bendigo Bank is aiming to shield its customers from potential investment scams tied to cryptocurrencies. It recently imposed restrictions on immediate transactions to crypto exchanges, identifying it as a protective measure against high-risk crypto payments.
Jason Gordon, the bank's fraud division chief, indicated that these newly introduced regulations might interfere slightly with some legitimate transactions, nonetheless, the key priority being protection against fraudulent activities. Gordon refrained from providing specific details regarding these potential high-risk transactions, maintaining discretion for the bank's operational tactics.
Bendigo Bank is not the only one to take this precautionary step. It joins the ranks of three other major Australian banking institutions that have adopted similar stances towards cryptocurrencies.
However, not everyone views these measures as the best course of action. Chengyi Ong, the APAC Policy Head at Chainalysis, warned before Bendigo Bank's announcement that such restrictions could lead Australian crypto users towards offshore exchanges. Furthermore, he argued that criminals could easily bypass these obstacles and continue to misuse other platforms.
Ong's solution is a collaborative effort. Rather than singularly targeting exchanges, he suggested banks, regulators, social media platforms, and telecommunication providers should join forces to combat every possible point of scam proliferation.
Dr. Aaron Lane, Senior Lecturer with the RMIT Blockchain Innovation Hub, shared similar sentiments. According to him, the ideal approach is for banks to actively collaborate with exchanges. He discouraged debanking as a regular risk mitigation tool, reserving it only for severe individual cases of risk.
Australia has been considering laws specific to cryptocurrencies for more than three years. Dr. Lane encouraged lawmakers to pursue crypto law reform more aggressively.
Previously, the Department of the Treasury issued a statement echoing Ong's and Dr. Lane's concerns. It expressed an understanding that persistent inaction could hinder financial competition, innovation, and potentially push businesses to operate solely with cash.
