Chainalysis’s policy head Chengyi Ong expressed concern that consumers of cryptocurrencies will be forced to utilise unregulated exchanges located in offshore jurisdictions.
To safeguard its clients from investment frauds, Bendigo Bank in Australia has blocked “high-risk crypto payments,” making them the fourth major bank in the nation to do so.
It said it had to do it to protect its 2.3 million users from fraudulent payments and improve security. A Bendigo Bank representative informed Cointelegraph that the bank will block immediate crypto transactions that it deems to be of greater risk, but that no additional information would be provided at this time.
The representative said it used “a combination of factors” to identify high-risk deals, but she wouldn’t elaborate. The bank said it was not indicating which markets its modifications would impact.
Australia’s crypto community will be forced to deal with overseas exchanges, Chainalysis APAC Policy Head Chengyi Ong said in an interview before the current Bendigo Bank news.
Ong told Cointelegraph that criminals would find a way around the restrictions by utilising other, non-crypto platforms and that the lack of confidence around banking access might push crypto exchanges and users outside of the jurisdiction of authorities.
Ong argues that rather than shutting off communications, banks, authorities, telecom providers, and social media platforms should work together throughout the whole scam’s lifespan.
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