In a recent development, Australian banks have pushed back against accusations from Coinbase regarding their stringent practices. According to the official information, the banks argue that these measures are essential to safeguard customers from the increasing prevalence of cryptocurrency scams.
Financial Losses from Crypto Scams
Industry representatives have pointed out that the financial losses due to crypto scams reached at least AU$330 million last year, underscoring the urgency for enhanced security protocols. The Australian Banking Association has stressed that banks are subject to severe penalties for any compliance failures, which further justifies their cautious approach.
Call for Improved Internal Controls
Moreover, the association has called on cryptocurrency platforms to improve their internal controls instead of seeking exemptions from existing regulations. This stance reflects a growing concern within the banking sector about the risks associated with digital currencies and the need for a collaborative effort to protect consumers.
Recent findings reveal that criminal organizations laundered approximately $161 billion through digital currencies, highlighting a stark contrast to the financial losses reported by Australian banks due to crypto scams. For more details, see more.
