Payment provider’s recent survey calls for Anti-Money Laundering and Counter-Terrorism Financing program documentation.
Payment provider’s recent survey calls for Anti-Money Laundering and Counter-Terrorism Financing program documentation.
Australian payment provider Cuscal has made moves to introduce fresh restrictions on cryptocurrency transactions.
Blockchain Australia has voiced its concerns over the move and articulated the need for a balanced approach since, amid economic uncertainty, the probability of scams and fraud rises.
“Australians rightly expect businesses they deal with to pitch in to help tackle this problem, but they also expect to be able to spend their money and use their assets as they choose, without undue restrictions,” said Blockchain Australia chair Michael Bacina. “Striking a balance requires evidence-based decision-making so that the costs of protection are proportionate to the benefit that protection brings.”
Cuscal’s recently circulated survey calls for documentation including Anti-Money Laundering and Counter-Terrorism Financing programs, along with fraud policies and procedures.
Notably, these documents are already a prerequisite for AUSTRAC-registered Australian DCEs.
What has been particularly concerning for industry stakehZenger News is the introduction of new requirements that appear to specifically target digital currency exchanges.
These include holding first-time inbound payments for 24 hours regardless of size, a similar 24-hour delay on outbound payments, and placing unspecified transaction limits on DCE payments.
Additionally, the survey speaks of name matching for “payer to wallet” requirements, real-time user identity verification, and assessing the permissibility of fund transfers to anonymous wallets.
In response to these new restrictions from Cuscal, Blockchain Australia invited Cuscal to participate in a roundtable discussion on June 27.
Cuscal recently terminated its payment services for Binance Australia.
Binance Australia confirmed that it would cease to support Australian Dollar bank transfers through PayID and indirectly attributed this development to Cuscal without mentioning the company by name.
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Edited by Arnab Nandy
