Bank of Queensland Rules Out Crypto Purchases With Mortgage Funds

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An Australian foreign exchange has revised its own contract terms to prohibit borrowers from using loans like mortgages to buy cryptocurrency. According a report by Australia Finance Review on Thursday, Bank of Queensland, that will be publicly traded on Australia’s stock market and one of the nation’s oldest retail banks, has supported the shift of the loan arrangements, which now state any loan purpose which involves the acquisition of usage of cryptocurrency is unacceptable. The move is the consequence of concerns over latest price volatility of the cryptocurrency marketplace, in addition to Australian authorities increasing scrutiny within the nascent distance, the report stated.

As previously mentioned by CoinDesk, Austrac, the nation’s financial intelligence agency, announced a brand new rule mandating know your client steps across crypto exchanges in Apr of this year. The Australia Taxation Office has also been seeking public opinions on how exactly should best tax gains made from cryptocurrency trading. Bank of Queensland’s decision comes as many other creditors in Australia are discouraging borrowers from using real estate mortgages to create high risk investments. Citing an anonymous broker in the market, the report stated lenders within the country are monitoring borrowers accounts for signals funds are being used to trade or buy cryptocurrencies.

They’re concerned since the Australian Tax Office, the Treasury, the Reserve Bank of Australia and Austrac are running all over it, the agent was quoted as stating. More broadly, major banks internationally – like JP Morgan Chase, Citi and Bank of America – have lately moved to prohibit users from using credit lines to buy cryptocurrency over worries that a volatile marketplace could depart borrowers struggling to repay their debts. Contract signing picture via Shutterstock. The leader in blockchain news, CoinDesk is a media outlet that tries for the greatest journalistic standards and complies with a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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