HSBC Australia Blocks Crypto Transactions, Beware Of Fraud Risks

HSBC blocks payments to crypto exchanges. (Photo; Doc. Coingape)

JAKARTA In an effort to protect its customers from rampant investment fraud, HSBC Australia has taken firm steps by blocking all payments to crypto exchanges starting today. This decision was taken following reports showing losses of up to IDR 2.7 trillion due to crypto investment fraud in Australia last year.

"We prioritize customer financial security," said HSBC Australian representative in its official statement. "By blocking transactions to crypto exchanges, we hope to minimize the increasing risk of fraud."

Australian Financial Authority also highlighted the potential for money laundering through crypto transactions. They classify this risk as moderate and are expected to increase in the coming years.

The Australian Tax Office (ATO) is increasingly monitoring crypto transactions. They have collected personal data and transactions from about 1.2 million crypto exchange accounts to ensure all taxpayers report revenue from crypto activities correctly.

In Australia, cryptocurrencies are considered as assets, not currencies. Profits from crypto trading are taxed. Many investors are surprised by this tax obligation.

Despite the intense scrutiny, Australians' interest in crypto continues to grow. More than 800,000 Australians have been involved in crypto transactions in the last three years. In fact, Australia has become one of the countries with the highest memecoin adoption in the world.

The increase in crypto activity is also accompanied by the rise of criminal cases, such as identity theft. Therefore, people are advised to always be careful and only invest in trusted platforms.