Australia’s Bendigo Bank blocks high-risk payments to crypto exchanges

Australias Bendigo Bank has ended up being the 4th major bank in the country to announce blocks for “high-risk crypto payments,” mentioning the requirement to safeguard customers from investment scams.The bank stated on July 31 it implemented new guidelines on immediate payments to crypto exchanges which adds “some friction to certain genuine payments,” explained its head of fraud Jason Gordon.It mentioned combatting fraudulent payments and enhancing securities for its 2.3 million consumers as factors for the blocks.Screenshot of Bendigo Banks warning about investment rip-offs. Source: Bendigo BankA Bendigo Bank representative told Cointelegraph that particular immediate crypto deals that it determines as greater danger will be blocked, but the bank is not divulging further details at this time. The spokesperson said it recognizes high-risk deals by using “a mix of aspects” but declined to discuss specifics. The bank said it was not disclosing what exchanges might be affected by its changes.Bendigo Banks blocks follow similar actions in recent months from 3 of Australias Big Four banks– Commonwealth Bank, National Australia Bank (NAB) and Westpac.In an interview carried out before the current Bendigo Bank announcement, Chainalysis APAC Policy Head Chengyi Ong alerted that such actions will require Australias crypto public to connect with overseas exchanges. Speaking with Cointelegraph, Ong argued that such blocks wont stop criminal actors from utilizing other platforms, crypto or not, while unpredictability over banking access could likewise drive crypto exchanges and users outside the jurisdiction of authorities.Related: Kansas Heartland Tri-State Bank closed by FDIC as banking crisis deepensInstead of cutting off exchanges, Ong states banks– along with regulators, telecommunication suppliers and social media platforms– need to work together at every point of the scam lifecycle.” [We need to target] all the prospective attack vectors and all the potential points of interaction between a fraudster and a victim. We need to deal with every single among those touchpoints.”Dr. Aaron Lane, Senior Lecturer with the RMIT Blockchain Innovation Hub informed Cointelegraph the “best thing” banks can do for customer protection is to constructively deal with exchanges, adding:”Debanking as a risk tool need to be booked for private cases of undesirable and severe danger, not a general posture towards an entire market or asset class.” Australia has been weighing crypto-specific laws for over 3 years, and Dr. Lane urged lawmakers to take crypto law reform “out of the too-hard basket.”Ongs and Dr. Lanes remarks follow an official statement from the Department of the Treasury in June that included similar warnings.The Treasury stated it comprehends its inactiveness on debanking will stifle monetary services competition and innovation and might “drive services underground and to run exclusively in cash.”Magazine: Unstablecoins: Depegging, bank runs and other threats loomAdditional reporting by Brayden Lindrea.