According to Mark Adams at Investments Global, Australia has become another country that has moved to block cryptocurrency platforms. Major spokespeople have stated that the major contributing factor to the boycott is the increased risk of scams in the industry. The major effects of the recent announcement have sent shockwaves both through the community and industry.
Many individuals in the country have funds stuck inside various cryptocurrency trading platforms and other traders who have their transactions suspended. Between March and July of 2023, a massive number of payments were blocked by the NAB with concerns about possible scams.
Blocking Access to a Variety of Crypto Exchanges
Another major concern that many crypto enthusiasts in Australia are having to contend with is that the NAB is blocking access to a range of crypto exchanges. They have yet to specify the exchanges that they will be clamping down on. Spokespeople for the NAB have specified that they will be looking to crack down on exchanges that have the highest risk of scams. While most major crypto exchanges fall into this category, there is still no confirmed news on which ones are heading to the chopping block.
According to Mark Adams at Investments Global, there are reports that Binance, one of the largest crypto exchanges in the world, will be the first to be blocked. Although nothing has been officially confirmed, multiple signs point to it being the first. The Commonwealth Bank and Westpac have reported that they will be blocking all payments to and from Binance, which is as good an indication as any that it is the first.
However, even if Binance is the first, NAB spokesperson, Sheehan has said that they will be having a consistent approach throughout the industry. So it would not be a surprise to see various other crypto trading platforms follow the same fate.
A Serious Concern
Cryptocurrencies have had to deal with a negative perception for most of their existence. While in the start, it was its links to more nefarious activities, and now it is the connection to scams. Even though the market has managed to move past its ties to illegal activities, its connection to scams is especially concerning.
NAB announced that nearly 50% of all scam-related cases were specifically linked to cryptocurrencies. Therefore, they are very careful to make sure that these scam-related incidents are kept to a minimum.
Wider Effect on the Market
With the serious measures that NAB is taking, it is obvious that the crypto market will be taking a major hit. Not only will traders from Australia have a harder time trading with cryptocurrencies, but even individuals who had a passing interest or were looking to get into it will stay away. Since the government has put out warning signs for the crypto market, most people will be staying away, which can do serious damage to the industry’s reputation.
To conclude, Investments Global senior account manager Mark Adams, the current stance that Australia is taking on cryptocurrencies can be detrimental to the market and its reputation. However, there is still a chance for the market to recover as many trading platforms are improving security measures to protect from scams.
