One of Australia's largest retail banks, Bank of Queensland, has made changes to its customer loan agreements. Now the document specifically stipulates a ban on using a loan secured by property for cryptocurrency transactions.
Bank of Queensland is the oldest bank in Australia, today it is already an entire banking corporation, occupying a leading position in the financial market of the continent.
The bank specializes in providing credit banking products and insuring financial risks. Many years of experience raises serious concerns among bank management about the high volatility of crypto assets. According to the bank, the instability of the digital market increases the risk of borrowers losing funds and stopping paying loan installments, which, in turn, is unprofitable for the bank.
Bank of Queensland is not the only financial institution in the country that advocates for the safety of customer funds. Recently, information has appeared that most banks in the country have begun to study customer accounts for involvement in virtual currencies. Although in practice it is difficult to control the spending of borrowed funds, many banks have already limited access to borrowed funds for the purchase of crypto-assets.
This position of banks is most likely due to the tightening of the policy of the country's regulatory authorities. The Australian Tax Service has strengthened its control over companies related to the crypto and blockchain industries.
In addition, Australia has set a course for increasing security standards and protecting consumers in the crypto space. Since April, new rules for Australian cryptocurrency exchanges have been launched and crypto platforms operating in Australia must prove their compliance with the updated laws.
This trend is observed on a global scale.
Banks, trying to preserve borrowers' credit funds and ensure their monthly loan payments, discourage high-risk investments. Thus, Wells Fargo has prohibited the use of its credit card to purchase digital currencies on crypto platforms.
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