Australian Banks Claim 40% of Scams ‘Touch’ Crypto as It Defends Restrictions.

During a panel at the Australian Blockchain Week, executives from Australia’s major banks explained why they added restrictions on payments to local crypto exchanges. Here are the most important points to take away from their discussion:

1. Compliance with regulations: The banks stated that they added restrictions on payments to local crypto exchanges to comply with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. They explained that these regulations require financial institutions to verify the identity of their customers and monitor their transactions to prevent illegal activities.

2. Risk management: The banks also mentioned that they added restrictions on payments to local crypto exchanges to manage their risk exposure. They explained that cryptocurrencies are highly volatile and pose a significant risk to their customers’ investments. Therefore, they need to protect their customers by limiting their exposure to cryptocurrencies.

3. Collaboration with regulators: The banks emphasized that they are working closely with regulators to ensure that their actions are in line with the regulatory framework. They explained that they are committed to supporting the growth of the blockchain industry in Australia, but they need to balance this with their responsibilities to their customers and regulators.

In summary, the executives from Australia’s major banks explained that they added restrictions on payments to local crypto exchanges to comply with AML and CTF regulations, manage their risk exposure, and collaborate with regulators. While these restrictions may limit the growth of the blockchain industry in Australia, they are necessary to ensure the safety and security of customers’ investments and prevent illegal activities.