CBA to hold payments for some cryptocurrency exchanges

The Commonwealth Bank of Australia has announced new measures it says are aimed at reducing risks associated with cryptocurrency exchanges.

The bank introduced new functions on Thursday that enables it to decline or hold for 24 hours a payment made to a cryptocurrency exchange.

CBA said it has plans to set $10,000 limits “in a calendar month where the bank can identify the customer payments are to exchanges for cryptocurrency purchases”.

It will monitor the impacts of the measures, which it said "will be subject to ongoing review.”

The restrictions CBA implemented around cryptocurrency exchanges are expected to reduce both the number of successful scams and the amount of money lost by customers.

Commonwealth Bank general manager of group fraud management services James Roberts said “unfortunately scammers globally are capitalising on this trend and masquerading as legitimate investment opportunities or diverting funds into cryptocurrency exchanges."

“With the incidences of scams increasing and in many cases customers suffering significant losses from being scammed, the introduction of 24 hour holds, declines and limits on outbound payments to cryptocurrency exchanges will help reduce both the number of scams and the amount of money lost by customers.

“While these measures will not eliminate the risk of customers suffering losses as a result of a scam that involves a payment to a cryptocurrency exchange, they are part of a range of initiatives designed to help customers reduce their risk of falling victim to a scam,” Roberts said.

Further crypto plans

iTnews understands the bank's crypto pilot remains on hold as it continues to work with regulators and the government over essential protections, regulatory requirements and community-related to safe consumer delivery of cryptocurrency exchanges.

The bank will continue to watch market conditions and developments in the space to determine next steps forward.