NAB will block transfers to certain crypto exchanges, with Binance potentially being one of them.
The crypto industry in Australia has faced a setback, with the National Australia Bank (NAB) declaring that it will impose restrictions on specific cryptocurrency exchanges, citing an alarming increase in scams as the reason behind the move.
Unveiling its latest customer protection strategy on July 17th, NAB disclosed a series of actions as a part of its "bank-wide scam strategy." The measures aim to protect customers from fraudulent activities.
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Besides freezing transactions from March to July 2023, the bank announced it would enact blocks on "some cryptocurrency platforms."
Although NAB didn't publicly name the cryptocurrency platforms that will be impacted, Chris Sheehan, NAB's executive for group investigations and fraud, did hint that the planned blocks would target platforms considered "high-risk" due to the prevalence of scams.
In an explanatory statement, Sheehan revealed:
These scammers are part of organized, transnational crime groups. Increasingly, we're seeing them use cryptocurrency platforms to send stolen funds quickly and often overseas.
Hints dropped in local media coverage suggest Binance could be among those impacted by NAB's proposed measures. As Sheehan commented:
Our approach is going to be consistent with the rest of the industry.
The comment can be linked to the stance taken by other Australian banks, such as Westpac and the Commonwealth Bank, that have allegedly blocked payments to Binance in recent months.
Adding to the growing narrative among local banks, NAB claims that nearly half of all scam funds reported in Australia have a crypto connection.
According to NAB's statement, "cryptocurrency scams are one of the fastest-growing security threats, with Australians losing more than $221 million to them last year." They further noted that approximately 40% of Australians are "extremely willing" to experience slower transactions if it means enhanced safety against potential scams.
The new protective actions by NAB, targeting crypto platforms, are indicative of the bank's commitment to the safety of their customers, even as it entails a cautious approach towards emerging digital financial technologies.
