Skip to main content

Scam Money Is Laundered via Crypto Exchanges — Australian Regulator

Scam Money Is Laundered via Crypto Exchanges — Australian Regulator

A significant portion of scam money is getting laundered through cryptocurrency exchanges, the CEO of the Australian Banking Association has alleged. The Australian Financial Crimes Exchange said as much as 47% of all fraud and financial scam proceeds in the country are washed on crypto exchange platforms.

Crypto a ‘Getaway Vehicle for Scam Money’

According to Anna Bligh, the CEO of the Australian Banking Association (ABA), an “alarming” portion of scam money often gets laundered via cryptocurrency exchange platforms. The CEO added that Australian authorities must also do more to “ensure cryptocurrency is not used as the getaway vehicle for scam money.” This would be in addition to stopping scams from reaching Australians via mobile phones, emails and social media, a report said.

The remarks by Bligh are seemingly backed by the latest data from the Australian Financial Crimes Exchange (AFCX). The data reportedly shows that as much as 47% of all proceeds from fraud and financial scams in the country are processed by cryptocurrency exchanges. David Pegley, the managing director of AFCX, added that once the funds are on a crypto platform “it is extremely difficult to recover them.”

To combat this problem, a report by the Australian Financial Review said many banks are now restricting the amount of funds sent to crypto exchanges.

“To protect customers, several banks have responded by imposing limitations on transfers to these exchanges,” the CEO reportedly said.

Burdening Users With Undue Restrictions

Commonwealth Bank, ANZ, National Australia Bank, Westpac, and Bendigo & Adelaide Bank are among the Australian financial institutions which have imposed limits on the amount of funds that customers can transfer to crypto exchanges.

Commenting on banks’ decision to target crypto entities, Blockchain Australia said it favors a more balanced approach, noting:

The protection of consumers is paramount, both in protection from scams and not burdening consumers with undue restrictions in who they choose to do business with, which must be evidence-based to ensure they bring genuine benefits without undue costs.

What are your thoughts on this story? Let us know what you think in the comments section below.



from Bitcoin News https://ift.tt/LITxM1A
Labels:

Comments

Post a Comment

Popular posts from this blog

Deep Web Roundup: Dream Adds Monero and Bitcoin Tumbler “Chip Mixer” Launches

The darknet has been quiet of late, which is the way it’s meant to be. No news means no mega busts, honeypots, or mass market shutdowns. Even when it’s out of the spotlight though, the deep web is quietly making news, whether trialling the latest privacy coins or the newest coin mixers that promise to restore a little of the privacy that’s being stripped away from bitcoin users on a daily basis. Also read: U.S. Agency ICE Conducts Investigations That Exploit Blockchain Activity The Battle for Privacy Heats Up Privacy is all relative, but of late there’s been relatively little privacy to be enjoyed by bitcoin users. Blockchain monitoring software is becoming more sophisticated and more common, with U.S. law enforcement agencies using it to profile and hunt down deep web users. Chip Mixer is a relatively new bitcoin tumbler that’s designed to restore some of that privacy. Available on both the clearnet and darknet, the service uses a variety of techniques to obfuscate blockchain m...
10 comments
Read more

International Crypto Exchange Luno Adds Bitcoin Cash Trading

Luno exchange has added bitcoin cash trading to the platform following feedback from its client base. BCH is now only the third cryptocurrency available for trading on the exchange, in addition to BTC and ETH , but more options could be on the way once Luno determines that they are credible enough. Also Read: Bitflyer Adds Bitcoin Cash Trading Across Europe and the US Luno Adds Bitcoin Cash Trading Luno, the London-headquartered company formerly known as Bitx, recently announced that bitcoin cash was made available on its cryptocurrency exchange. Starting from Monday, September 23, customers at Luno are now able to store, buy and sell BCH on the platform. The reason given for adding BCH to the exchange is feedback from users in developing markets that convinced Luno to expand their offering from previously just BTC and ETH . Marcus Swanepoel, CEO of Luno, said , “We are in a new and exciting financial era. Developing economies are leading the large-scale adoption and appli...
Post a Comment
Read more

Ombudsman Receives Complaints About Crypto Investments in Spain

The Spanish ombudsman has been receiving complaints about cryptocurrency and how some Spanish citizens investing in these vehicles have lost everything. In his annual report, Angel Gabilondo recognized the rise of cryptocurrencies as a new problem due to the little or no regulation crypto sees in the country. In the same way, the EU has also warned about these assets recently. Spanish Ombudsman Gives His Take on Crypto Angel Gabilondo, the Spanish ombudsman, has given his take regarding cryptocurrencies and the effects they have on citizens investing in some of these projects. Gabilondo said in his yearly report that cryptocurrencies have become “a new problem” during the year examined, with many people having lost all of their funds invested. The report states : Cryptocurrency exchange companies or platforms are not regulated in the legal system, are not subject to any public supervision system, nor do they benefit from deposit guarantee systems. The affected users that sought...
Post a Comment
Read more