The National Australia Bank (NAB) has announced to block a number of cryptocurrency exchanges due to concerns about the risk of fraud. The bank also announced a series of new measures to protect customers.
NAB did not specifically disclose which exchanges were blocked. NAB fraud investigation manager Chris Sheehan said the bank only blocks high-risk platforms and scams happen frequently. He said these scammers are part of an organized transnational criminal group that uses cryptocurrency platforms to launder money abroad.
Over the past few months, other major Australian banks, including Westpac and Commonwealth Bank, have also reportedly blocked payments to Binance. Cryptocurrency advocate group Blockchain Australia has expressed concern these restrictions are likely to hold back the growth of the Australian cryptocurrency industry
Over the past four months, NAB has blocked approximately $184 million in payments allegedly linked to the scam. Sheehan said NAB’s decision to block payments for some crypto exchanges is in line with the industry’s goal of reducing crypto fraud. This measure is among 60 initiatives underway at NAB to reduce the impact of scams and fraud, he said.
According to CoinTelegraph, 50% of funds stolen through reported scams in Australia are crypto-related. NAB declares cryptocurrency fraud to be one of the fastest-growing security threats. Australians have lost more than $150 million in 2022. The agency says 40% of Australians are “very willing” to pay slower as long as they are protected from scammers.
According to CryptoSlate, Australia is not the only country working to prevent scams through cryptocurrencies, Belarus is developing a law to ban cryptocurrency trading outside of regulated exchanges to combat cybercrime