CryptoSlate
From Dec. 1, Westpac’s policy sets a cumulative monthly allowance of A$10,000 for identified cryptocurrency exchange payments across a customer’s relevant accounts and covered payment methods. Once that amount is reached in a calendar month, the bank may reject further eligible payments until the next month begins.
The limit may apply across online banking, the Westpac App, credit cards and debit cards. Payments through covered channels count toward the same allowance wherever the policy applies. Each holder of a joint account has an individual A$10,000 monthly limit, which also spans that person’s other relevant accounts and products.
Westpac will also end in-branch payments it reasonably identifies as going to cryptocurrency exchanges on Dec. 1. The bank says customers cannot request an exemption or a higher limit. Its policy acknowledges that payments above A$10,000 may still occur, since enforcement is discretionary and depends on Westpac identifying an eligible exchange payment through a covered channel.
Why it matters
The policy adds a bank-level constraint on how customers can fund identified crypto exchanges in Australia. Its cumulative design means switching between covered payment methods does not necessarily reset the allowance. The restriction is not universal: coverage depends on which exchanges and payment details Westpac identifies, and the bank says the relevant products and methods may change over time.
Westpac frames the measure as a response to cryptocurrency scam risks. In a May 18, 2023 release, it said trials of protections for some cryptocurrency payments had begun, with blocks to roll out in phases over the following weeks.
Market impact
The policy limits some customers’ ability to send funds to identified exchanges through covered Westpac channels, particularly when a planned payment would take them over the monthly cap. It does not change incoming withdrawals from exchanges into Westpac accounts. Customers may still face separate restrictions imposed by the exchange itself.
Frequently asked questions
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Which Westpac payment methods may count toward the A$10,000 monthly limit?
The policy may cover online banking, the Westpac App, credit cards and debit cards. Covered payments contribute to the same cumulative monthly allowance wherever the policy applies.
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How does Westpac's crypto payment limit apply to joint accounts?
Each joint-account holder has an individual A$10,000 monthly limit. The allowance spans that holder’s relevant accounts and covered products, including payments through a joint account.
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Can Westpac customers request a higher crypto payment limit or an exemption?
No. Westpac’s policy rules out exemptions and increases to the cumulative monthly limit.
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Will the Westpac policy block every crypto exchange payment above A$10,000?
Not necessarily. Westpac says payments above the limit may still occur because enforcement is discretionary and depends on identifying an applicable exchange payment through a covered channel.
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Are withdrawals from crypto exchanges into Westpac accounts affected?
No. Westpac says incoming withdrawals from cryptocurrency exchanges remain unchanged, although customers may face restrictions imposed by the exchange.
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