HSBC Ceases Cryptocurrency Offerings In Australia

HSBC bank announced that its Australian division has made a big decision concerning cryptocurrency services. The bank revealed that customers in the region can no longer perform financial transactions using cryptocurrencies. This is shocking news for HSBC Bank’s customers who love to receive and send funds with cryptocurrencies in Australia.

Australian Consumers Lost About $171 Million To Fraudsters Last Year

HSBC made this announcement through an email it sent to its customers. According to the announcement, from 24 July 2024, HSBC stopped payments from credit cards and bank accounts that are connected to cryptocurrency exchanges. It wants to protect its clients from possible scams.

According to the update, HSBC said consumers in Australia lost about $171 million to fraudsters last year. They invested in schemes promising them high returns. However, their expectations were cut shut and they lost all their investment funds.

Australia’s financial regulators have been warning consumers about the potential risks involved with cryptocurrencies. They revealed that these tokens are becoming a focus for money laundering.

These regulators claimed that using cryptocurrencies for payments in Australia is risky. They revealed that the risk level is medium for now. However, these authorities warned that the risk in the sector could significantly increase in upcoming years.

The Australian Taxation To Collect Transaction Details From 1.2 Million Accounts

The Australian Taxation Office is closely getting involved in the matter. The agency has started asking cryptocurrency exchanges for client’s transactions and personal information. It aims to get details from about 1.2 million accounts.

The Taxation Office made this move to find out if any exchanges would fail to provide their cryptocurrency activities. This includes selling and trading the tokens and using them to buy items or services daily.

Cryptocurrency exchanges are expected to provide certain details to the Australian Taxation Office. These include client contact details, birthdays, and social media profiles. Furthermore, they must also show customers transaction data like wallet addresses and account numbers.

In Australia, cryptocurrencies are seen as assets people own, like properties for taxes, and not as foreign currency. This implies that anyone trading or selling the token for profits will be entitled to provide capital gains tax. For many users, the tax duty might come as a shock if they don’t know the rules.

Despite the tax law on cryptocurrencies, the sector still stands strong in Australia. A report showcases that more than 800,000 individuals in the country have used cryptocurrencies to complete payment and trading transactions within the last three years.

At the time (2021), about a 63% increase in cryptocurrency activities was recorded. This growth is massive.