Home / Crypto Currency / Bank of Queensland Bans Crypto Purchases Using Home Equity Loans

Bank of Queensland Bans Crypto Purchases Using Home Equity Loans


Advertisement

Australian retail lender Bank of Queensland is updating its borrowers’ loan contracts to keep them from purchasing cryptocurrency using mortgage funds.

Brisbane-based Bank of Queensland, a retail bank listed on Australia’s primary stock exchange is discouraging its borrowers from using real-estate mortgages to purchase cryptocurrency after deeming it a high-risk investment, according to the Australian Financial Review.

Citing a mortgage broker, the report also reveals that domestic banks are actively monitoring borrowers’ accounts to question of crypto trading and purchases as well as offshore trades or fund transfers.

While they publicly claim that customers aren’t questioned about their use of their borrowed home-loan funds, banks continue to ‘discreetly monitor and regulate crypto-loans’, the report added.

A representative from the Bank of Queensland confirmed that the lender was updating its loan contracts to explicitly state:

“…any loan purpose that involves the acquisition of or usage of cryptocurrency is unacceptable.”

The bank’s concern stems from the increasing scrutiny into the sector by Australia’s taxation authority, treasury, the financial watchdog and the central bank, according to the anonymous broker.

As reported previously, AUSTRAC, the country’s financial watchdog and intelligence agency, began monitoring cryptocurrency exchanges following legislation that regulated cryptocurrency exchanges in late 2017. On April 3, 2018, all domestic cryptocurrency exchanges were reminded of their obligations to adhere to KYC/AML norms. In essence, Australian authorities now have the means to target and monitor the transactions of any single cryptocurrency trader registered with a domestic exchange.

Australia’s taxation authority is also looking into crypto-related profits by citizens – including those trading offshore – to remind them of their capital gains tax obligations. Earlier this year, the authority opened a public consultation on how to best collect taxes given the ‘practical compliance issues’ from compliance with crypto-related tax obligations.

The Bank of Queensland’s restrictive policy toward cryptocurrency purchases follow ‘big four’ bank CBA barring its customers from buying crypto using borrowed funds via credit cards.

Featured image from Shutterstock.

Follow us on Telegram or subscribe to our newsletter here.
Join CCN's crypto community for $9.99 per month, click here.
Want exclusive analysis and crypto insights from Hacked.com? Click here.
Open Positions at CCN: Full Time and Part Time Journalists Wanted.
Advertisement
Read more

Check Also

What is the COINiD Cold Storage Solution?

Cryptocurrency users all over the world are always looking for ways to keep their funds safe and secure. That is a pretty big challenge, especially when buying a hardware wallet is not an option. COINiD, a new software-based cold storage solution, may offer a viable alternative in this department moving forward. The COINiD Concept Explained For those who are unfamiliar with COINiD, it is a software solution providing cryptocurrency cold storage solutions to Android and iOS users. This wallet solution is completely open sourced first and foremost, which means anyone can review the code to determine whether or not this solution is worth exploring. How Does it Work? What most people are interested in is how the COINiD solution works and what it has to offer. It is designed to support cryptocurrencies, with support for Bitcoin available at this time. Other currencies may be added moving forward, as the site makes mention of Litecoin, Ethereum, Monero, Dash, and a few others. The functionality provided by COINiD includes full control over private keys, offline address validation, SegWit support, biometric authentication, and so forth. The biometric authentication supports fingerprint scanning on Android and FaceID scans for iOS devices. There is still more functionality waiting to be added moving forward, although the current set of features is rather compelling as well. The COINiD solution exists of two different applications to provide additional security. The COINiD Vault stores private key information in a completely offline manner and signs transactions. The COINiD Wallet is a regular wallet solution to spend and receive funds. It also communicates with COINiD Vault for transaction signing. As such, users can benefit from additional security and give one of their old Android or iOS devices a second lease on life. Is it a Viable Solution? For those cryptocurrency users who do not feel comfortable using anything other than mobile devices to keep their holdings safe, this option is worth exploring. Most people rely on hardware wallets, as they are more secure in general. However, the COINiD concept certainly has plenty of merit, assuming one has a spare device to “sacrifice” for this specific purpose. Having multiple options to store cryptocurrency is never a bad idea, though. The post What is the COINiD Cold Storage Solution? appeared first on NullTX.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.