National Australia Bank Bans Crypto Exchange, Cites Potential Scams

NAB’s New Measures to Block High-Risk Crypto Platforms

National Australia Bank (NAB) has revealed a set of measures to protect customers from fraud, including blocking some cryptocurrency platforms due to the high level of scam risk in the industry. Between March and July 2023, NAB will also be halting millions of payments.

Chris Sheehan, NAB’s Executive for Group Investigations and Fraud, did not disclose the names of the cryptocurrency exchanges that will face blocks from the bank, but stated that the new blocks are meant to protect customers from scams on “high-risk” platforms.

The bank’s announcement comes amid the growing popularity of crypto assets such as Bitcoin, Ethereum, and Ripple (XRP). Chinese crypto exchanges and crypto net services such as Coval Crypto and Coti Crypto have also made headlines recently, as well as crypto bankruptcies reported by CNBC.

Crypto Blocks Impacting Binance Exchange

Sheehan stated that the National Australia Bank’s (NAB) crypto blocks could potentially affect the Binance crypto exchange. “Our approach is going to be consistent with the rest of the industry,” the executive reportedly said. Other large Australian banks, such as Westpac and the Commonwealth Bank, have also reportedly blocked payments to the crypto exchange.

In an email to Cointelegraph, Sheehan revealed that NAB’s decision to block payments to several crypto exchanges is in line with broader industry action in reducing scam-related crypto payments. “Our insights have shown that these measures are having a positive impact to reduce scams,” the exec noted, adding that the measure is among 60 initiatives that are underway or completed at NAB to reduce the impact of scams and fraud. NAB declined to comment on the specific exchanges that have been blocked.

Crypto Scams on the Rise in Australia

When contacted, Binance did not provide Cointelegraph with a comment. However, the National Australia Bank (NAB) released a statement on the growing number of crypto-related scams in the country.

According to the NAB, nearly half of the reported scams in Australia are linked to cryptocurrency. In addition, Australians lost more than $221 million to crypto scams last year.

Moreover, the NAB found that 40% of Australians are willing to accept slower payments if it would help protect them from fraudsters.

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