Westpac Caps Crypto Exchange Payments at A$10,000 a Month Under Fraud Prevention Rules
Westpac will restrict certain payments to cryptocurrency exchanges to a cumulative A$10,000 per customer each calendar month under a policy designed to address cryptocurrency scam risks. The rules cover eligible transactions across relevant accounts and payment methods, with the bank retaining discretion over which payments it blocks.
The policy takes effect on December 1 and applies to payment channels that may include online banking, the Westpac App, credit cards and debit cards. Where the restrictions apply, transactions across those channels contribute to the same monthly allowance rather than receiving separate limits.
How Westpac's A$10,000 Crypto Payment Limit Works
Once a customer reaches the A$10,000 cumulative threshold in a calendar month, Westpac may reject further eligible payments to identified cryptocurrency exchanges until the following month begins. The amount is calculated across the customer's relevant accounts and covered payment methods.
Joint accounts are also subject to the policy. Each account holder has an individual cumulative monthly allowance of A$10,000 across their relevant products and payment methods, including covered payments made through a joint account.
Westpac will not grant exemptions or increase the stated monthly limit. Customers seeking to transfer more than the allowance to an exchange therefore cannot obtain a higher threshold under the bank's published policy.
Restrictions Depend on the Exchange and Payment Method
The policy applies to cryptocurrency exchanges that Westpac identifies when a payment is processed. Not every exchange or payment may be covered, and the specific payment details accepted by individual exchanges can affect whether a transaction falls within the restrictions. The relevant products and payment methods may also change over time.
Westpac acknowledges that payments exceeding A$10,000 may still occur. The restrictions are discretionary, and their enforcement depends on the bank identifying a covered exchange payment through an applicable account, product or payment channel.
Separately, Westpac will stop supporting in-branch payments that it reasonably identifies as payments to cryptocurrency exchanges. This restriction applies alongside the monthly limit for relevant online and card transactions.
Crypto Exchange Withdrawals Remain Unchanged
The new policy does not change Westpac's handling of withdrawals from cryptocurrency exchanges into customers' bank accounts. However, customers may still face restrictions imposed by the exchanges themselves.
Westpac has previously linked cryptocurrency payment protections to scam prevention. In a May 18, 2023 release, the bank said it had begun trials of safeguards for certain cryptocurrency payments, with blocking measures scheduled to be introduced in phases over the following weeks.
source: cryptoslate
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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