HSBC Australia has announced it will block customer payments to cryptocurrency exchanges starting July 24 due to concerns over customer protection.

According to communications shared on X, the bank has cited a rise in crypto-related investment scams, reporting that Australians incurred losses of up to $171 million in 2023.

While the bank will prohibit payments to crypto exchanges, it will continue to allow customers to receive funds from these platforms. However, the bank did not provide more details about which crypto exchanges would be affected under the restrictions.

Customers affected by the new policy were advised in an email from HSBC posted to Reddit to seek alternative methods for making such payments.

“Because of the high-risk nature of these payments, you will not be able to make this payment using HSBC,” HSBC Australia noted in the email.

This move by HSBC Australia aligns with actions taken by Australia’s major banks—Commonwealth Bank, National Australia Bank, Westpac, and Australia and New Zealand Banking Group—approximately a year ago, which also restricted access to cryptocurrency platforms, citing similar concerns over scams and trading risks.

Additionally, Australia’s financial crime watchdog, AUSTRAC, has recently heightened its warnings about the potential for money laundering through cryptocurrencies. It noted particular vulnerabilities with digital currencies being used for payments and forecasted increasing risks in this area.

The stance follows a prohibition against using cryptocurrencies for online gambling payments in Australia.

Furthermore, regulatory bodies are intensifying scrutiny over the cryptocurrency sector. The Australian Taxation Office is seeking personal information and transaction details from crypto investors and exchanges, while the Australian Securities and Investments Commission (ASIC) is targeting crypto entities it suspects of offering unregistered securities.