NAB’s head of group investigations and fraud, Chris Sheehan, said the main reason for blocking access to digital asset platforms was concerns about fraud. The top executive did not specify which trading platforms are affected by the blocking, but called crypto asset transactions dangerous.
According to the NAB, Australians lost A$221 million (about $151 million) last year to cryptocurrency fraudsters. The bank also cited data from an Australian organization that investigates financial crime: in the past 30 days, nearly 50% of fraud cases have involved cryptocurrencies.
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“We are increasingly seeing international criminal groups using cryptocurrency platforms to quickly move stolen funds overseas,” said a top executive at National Australia Bank.
Earlier, another major Australian bank, Westpac Banking restricted customer access to cryptocurrencies by banning customers from opening deposits on Binance, a major cryptocurrency exchange. In June, Commonwealth Bank set a limit for cryptocurrency exchange deposits to protect customers from potential losses. In the same month, Australian and New Zealand banking group ANZ said it would not add support for cryptocurrencies.
This year, the National Bank of Australia successfully conducted an international transaction using the AUDN stablecoin, which is pegged to the Australian dollar, and recognized its potential in the payments industry.