HSBC Australia Bans Payments to Crypto Exchanges

HSBC Australia has implemented a ban on payments to cryptocurrency exchanges starting July 24, 2024.

This action, communicated via email, aims to safeguard customers from potential scams by blocking transactions from bank accounts and credit cards directed to these exchanges.

The move follows concerns highlighted by a report indicating that Australians lost up to $171 million to investment frauds last year. Regulators are increasingly wary of cryptocurrencies due to their association with money laundering risks, with expectations that these risks will grow over time.

Additionally, the Australian Taxation Office (ATO) is ramping up its scrutiny by gathering personal and transactional data from approximately 1.2 million crypto accounts to ensure proper tax reporting. This includes information on trading, selling, and using cryptocurrencies.

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Cryptocurrencies are treated as assets in Australia, making any profits from them subject to capital gains tax. Despite these regulatory measures, cryptocurrency engagement remains high, with over 800,000 Australians participating in transactions over the past three years and significant interest in memecoins.

Alexander Stefanov