Even after growing regulation in the cryptocurrency sector, Australia's big banks retain mindful policies when it pertains to cryptocurrencies. Even though cryptocurrency businesses appear to challenge Australian banks' appetite for risk, many institutions allow cryptocurrencies to be purchased using credit cards.
Credit Card Cryptocurrency Purchases Permitted by Many Australian Banks
A spokesman on behalf of Westpac, Australia’s second-largest bank by capitalization, specified that the organization “does not restrict [the] use of accounts or credit cards in relation to purchasing cryptocurrency as long as the transaction complies with our legal obligations and terms and conditions.” The same policies extend to the Westpac-owned subsidiaries, St George Bank, Bank of Melbourne, and Bank SA.
The sentiment continues with the country’s third-largest bank, Australia and New Zealand Banking Group (ANZ), which also does not prohibit its customers from buying and securing cryptocurrencies, with an ANZ representative declaring that the bank “does not prohibit customers buying digital or cryptocurrencies, or accepting them as a form of payment.” That being said, the spokesperson added further that the bank would certainly “monitor[s] transactions for unusual behavior to protect against potential fraud and in line with our regulatory responsibilities.”
The largest bank in Australia, the Commonwealth Bank of Australia (CBA), however, modified its policies a little over a year ago to disallow virtual currency purchases via means of a credit card. In spite of this, a Commonwealth Bank spokesperson declared that “customers are still able to buy and sell cryptocurrencies using their CBA transaction accounts and debit cards.” CBA subsidiary Bankwest observes the same policies in this instance.
Few Banking Options Available to Australian Cryptocurrency Businesses
Despite their search, News.Bitcoin.com was unsuccessful in their attempt to discover and speak to an Australian financial institution which expressed a genuine willingness to bank cryptocurrency businesses.
Out of all the major banks in Australia, while CBA and Westpac preferred not to comment on the matter, an ANZ spokesperson stated that the company’s policy “is to not bank businesses that operate as issuers, dealers or exchanges of digital or crypto-currency as they are outside of our risk appetite.” A representative for regional bank Suncorp also mentioned that the company does not provide “services to cryptocurrency businesses” at this time.
The island nation's credit union likewise appears to keep policies that are standoffish to cryptocurrency businesses, with a Newcastle Permanent delegate suggesting that the entity does not partner with crypto companies, nor does it allow cryptocurrency transactions utilizing its credit cards.
An agent for Heritage Bank, one of Australia’s biggest credit unions, declared: “Due to the high risk and anonymous nature of cryptocurrency trading, Heritage has made the decision not to transact with business accounts that trade in cryptocurrencies.”
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