Westpac to Enforce A$10,000 Monthly Limit on Crypto Transactions Amid Fraud Concerns

Westpac's New Cryptocurrency Payment Policy

Starting December 1, Westpac will introduce a new policy that restricts its customers to a total of A$10,000 in cryptocurrency-related payments each month across all relevant accounts and payment methods. This policy encompasses transactions made through various channels, including online banking, the Westpac App, as well as credit and debit cards.

Monthly Payment Cap

Under these guidelines, payments made via app transfers and card transactions contribute to the monthly cap. Once a customer hits the A$10,000 threshold within a calendar month, Westpac will deny any further crypto exchange payments until the following month. This limit applies cumulatively, taking into account all payments from associated products under Westpac’s control.

Joint Accounts and Individual Limits

For joint account holders, each individual is permitted a separate A$10,000 limit on cryptocurrency transactions across their respective accounts and payment methods. This ensures that both parties can independently manage their transactions, whether they are made through a joint account or individual accounts.

In-Branch Payment Changes

Additionally, Westpac will cease to process in-branch payments identified as being directed toward cryptocurrency exchanges, effectively eliminating branch support for these transactions beginning in December. However, the online and card payment limits will remain in place, with no provisions for exceptions or adjustments to this monthly ceiling.

Rationale Behind the Policy

While officials stress the implementation of this policy is linked to the growing risks of cryptocurrency scams, they also recognize that payments exceeding A$10,000 may still occur. Enforcement of the cumulative limit will depend on the bank's ability to recognize relevant exchange transactions made through covered products and channels, which may evolve over time.

Withdrawals and Future Measures

Notably, withdrawals from cryptocurrency exchanges to Westpac accounts will remain unaffected, although customers must verify any specific restrictions set by the exchanges themselves. Back in May 2023, Westpac announced the initiation of protective measures against fraudulent cryptocurrency transactions, citing ongoing trials and a planned phased rollout of these safeguards. The new policy reflects the bank's proactive approach to mitigate risks associated with cryptocurrency investments.