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Australian Banks create bedraggle regarding their stance on digital currencies

Australian and New Zealand banks have recently created confusion regarding their digital currencies regulations policy. Some major banks are on one stance while the other ones are maintaining a quite different stance as far as their policy on cryptocurrencies is concerned.  Despite the strict regulations regarding cryptocurrencies in the country, certain major banks are avoiding issuance digital currencies. In fact, they are avoiding any dealings in them. Thus creating bedraggles among businesses.

Westpac Banking Corporation, an Australian bank, and the financial-services provider are one of Australia’s “big four” banks. It has headquarters at Westpac Place in Sydney. A spokesperson for Westpac Banking Corporation has said that “does not restrict [the] use of accounts or credit cards in relation to purchasing cryptocurrency as long as the transaction complies with our legal obligations and terms and conditions.”

Another example is of Australia and New Zealand Banking Group, the third largest bank by market capitalization in Australia, the representative of this bank has said that “does not prohibit customers buying digital or cryptocurrencies, or accepting them as a form of payment.” However, the spokesperson added that the bank “monitor[s] transactions for unusual behavior to protect against potential fraud and in line with our regulatory responsibilities.”

Yet another example is of The Commonwealth Bank of Australia, an Australian multinational bank with businesses across New Zealand, the United States, and the United Kingdom. This Bank has prohibited the purchase of digital currencies via credit cards of its banks. Following which a spokesperson of The Commonwealth Bank of Australia said that “customers are still able to buy and sell cryptocurrencies using their CBA transaction accounts and debit cards.”

The Banks have surrounded themselves around such controversies but yet have refused to present clarity on the matter and issue a statement or any comment to clear its stance. The policies are turning out to be quite cold for the business and the approach is not in conformity with the regulations policy (regarding cryptocurrencies) prevalent in the country. The Banks must come clear to prevent further setbacks to the businesses.

About Ritika Sharma

Ritika Kumari Sharma is an Economics Honors graduate from the University of Calcutta. She is completely into finance and believes that cryptocurrencies are the future. She is an enthusiast learner about the cryptocurrency and blockchain technology.

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