The Australian Bank of Queensland has banned property buyers from using home equity to buy cryptocurrencies, the Financial Review reported July 12.
The Bank of Queensland is reportedly the latest institution to bar credit lines from loans to be used for leveraged purchases or trading of cryptocurrencies.
The Bank of Queensland is updating loan contracts, alerting consumers that “any loan purpose that involves the acquisition of or usage of cryptocurrency is unacceptable”.
Borrowers could access loan money from for a property to purchase crypto by using redraw features offered with the mortgage.
Last month, Australian tax experts confirmed that the Australian Taxation Office (ATO) is taking stern measures on crypto investors this year.
Various banks around the world have shown a tendency to oppose cryptocurrency. Bank of Queensland is doing exactly that, even though its decision makes a lot of sense. Clients were tapping into home equity loans to buy cryptocurrency, which is ill-advised.
One of Australia’s oldest financial institutions, Bank of Queensland, has prohibited the use of home equity loans for virtual currency speculation. Also Read: Tether Announces Appointment of New Chief Compliance Officer Bank of Queensland Cracks Down on Customers Using Mortgage Funds to Trade Crypto Bank of Queensland has banned its customers from using loans that are
The regulatory mechanisms in cryptocurrency environment were once again at play in Australia, as the Bank of Queensland banned the use of Housing Equity to fund cryptocurrency investments. The ban was issued over fears of high risks investors would experience due to volatility in conditions of trading.
As Australian authorities continue to push pressure onto the crypto-sphere, The Bank of Queensland, one of the countries biggest retail banks have decided to make a move which will see a change in the maintenance of their loan agreements.
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