Commonwealth Bank of Australia (CommBank) has placed a monthly limit of $10,000 on outgoing payments associated with crypto platforms. This is a major change to how customers carry out transactions with cryptocurrency exchanges, and this measure applies to all personal accounts. Meaning if you have more than one account, you still cannot carry out transactions totalling more than $10,000 in a given calendar month.
Given a national rise in scams and fraudulent activity related to the crypto sector, the CommBank decided to implement this cap. The official statement from the bank stresses how this is a preventative fraud measure and not a restriction on crypto. They are not preventing users from dealing with crypto or blocking their access, it’s just a stricter control measure on payment flows. Ultimately, the goal is to cut down on scam-related activity.
Customers are still allowed to use their transaction accounts to transfer money to crypto exchanges, but as soon as the $10,000 limit is reached, no more payments will go through. This is a blanket rule, applying to every single payment channel from mobile app transfers to in-branch transactions. Here are more details about the limit.
Payments Over the Limit Will Be Declined
The restriction is fairly simple to understand. Any additional transactions over the $10,000 monthly limit will be declined by the system. So, regardless of whether someone tries making multiple smaller payments or sends one major transaction over $10,000, it will be denied in both cases. For example, four payments of $3,000 in a month will mean that your final payment exceeding the threshold will not go through.
Notifications will be sent by CommBank via email, push notifications, SMS, and NetBank inbox to allow customers to understand the reason for the block without any delays. This is crucial, especially in a volatile financial world like cryptocurrency.
But the hard limits aren’t the only measures being put in place. The bank reserves the right to place a 24-hour hold on specific payments, regardless of the amount. This gives authorities a chance to take a closer look at red flags based on patterns associated with scams.
Also, there’s no information about which wallet addresses and cryptocurrency exchanges are being flagged. This is done in order to avoid any manipulation of the scam-prevention system in place.
Why CommBank is Taking Action: Millions Lost to Scams
It was reported by the National Anti-Scam Centre that Australians lost nearly $1 billion to investment scams throughout 2024. Most of the scams were either solely crypto-related or otherwise disguised as asset classes with payments directly to cryptocurrency exchanges. So, CommBank decided to implement measures for safe and secure transactions.
There had been a rise in cases where customers thought they were investing in managed funds or shares, only to discover their money had been transferred to a crypto wallet. These schemes were carefully curated through fake websites and sophisticated tactics, as well as high-pressure sales tactics.
This review of certain payments and a firm transaction limit will allow CommBank to interrupt scam transactions before the funds are irreversibly transferred. As a result of this measure, there are certain limits on how customers can access crypto, but the goal is to introduce financial speed bumps to filter out scammers.
Experts believe this measure is the first of many in the growing industry trend, as more and more banks attempt to fight the misuse of digital financial tools.
What Customers Can and Can’t Do Under the New Rules
The new $10,000 cap limits have certainly affected investments, but there are no limits on withdrawals from crypto exchanges into CommBank accounts. So, basically, you can receive funds from your exchange without any restrictions, but you can’t transfer money into an exchange beyond the $10,000 limit.
At the same time, you can’t request an exemption from the cap. There are also no options to apply for higher limits, and it universally applies to all customers holding a CommBank account. But that’s not the only restriction in place.
Under the new policy, only payments made from eligible transaction accounts will be processed. This means no more use of lending facilities like offshore accounts connected to a home loan, to move money into a crypto exchange. These transfers will also be blocked, regardless of the account balance or amount.
Future Outlook and Ongoing Monitoring
According to CommBank, these measures are not final; in fact, they are only a part of the evolving strategy to combat fraud and scams. The bank will continue making adjustments as needed and will closely monitor all transactions, customer behavior, and scam reports.
Ultimately, the $10,000 cap could change, and the associated holds may become shorter or longer, depending on how effective the measures have been. If crypto-related scams continue to rise or other complex scams take place, then further restrictions can’t be ruled out. At the same time, if the scam volume drops significantly, the bank may remove certain limits.
The idea is to find the right balance between access and safeguarding customers from devastating loss. Even with the measures in place, CommBank has repeatedly urged customers to be aware of and cautious of investment offers and to verify them as much as possible.
With growing interest in cryptocurrency and adoption, it’s important to implement secure banking practices, signaling a cautious but necessary approach in the evolving financial landscape.
Frequently Asked Questions (FAQs)
Am I still allowed to make withdrawals from a cryptocurrency exchange to my CommBank account?
Yes, the limit only applies to outgoing payments. You can receive funds from exchanges into your CommBank account without any restrictions from the bank, but certain exchanges have their own withdrawal limits that should be checked directly.
Will CommBank notify me if a payment is declined?
Yes, if your payment to a cryptocurrency exchange is declined or is flagged as high-risk, CommBank will notify you through push notifications, SMS, email, and through your NetBank inbox.
Is there any way to increase the crypto payment limit?
No, this is a blanket rule applicable to every payment method and all customers. This helps ensure consistency and fairness.
Do these changes apply to all crypto exchanges?
Yes, these changes apply to all domestic and international cryptocurrency exchanges. There is no official list of exchanges released by CommBank, in a bid to protect its scam detection systems.
Does this change apply to my joint account?
Yes, the policy applies on an individual basis. Each account holder will be subjected to a $10,000 monthly limit, even if two people use the same account.
