The Bank Of Queensland Has Just Ruled Out The Purchase Of Crypto Coins With The Mortgage Funds
A bank in Australia has just revised their current contract terms. It is all to ensure they have prohibited the borrowers from using the money they have acquired as a loan, such as a mortgage, to be used in the purchase of crypto coins instead.
The Bank Of Queensland Changing Loan Agreements
According to a report that was released on Thursday by the Australian Financial Review, the Bank of Queensland has just confirmed the changes they have made in their loan terms. Bank of Queensland is one of the banks publicly traded on the stock exchange of Australia, and it is one of the oldest retail banks in the country. The new agreement states that any loan purpose that has been used to involve the usage or even acquisition of the crypto coins is not acceptable.
The bank made this move as there have been recent concerns over the price volatility in the crypto market. But this is not all the Australia regulators have also increased their scrutiny over the nascent space, this is according to the report.
As CoinDesk has reported, the country’s financial intelligence referred to as Austrac, just announced a new rule that is mandating the need to increase the measures used to know your customers, this is across the crypto exchanges this year in April. And this is not all as the Taxation office in Australia is also seeking to get public feedback on the best tax profits that should be made from the trading of the crypto coins.
The decision that Bank of Queensland has also come at the same time as other lenders in the country have even gone ahead to discourage the borrowers from using the mortgage for real estate to make these high-risk investments.
Borrowers Are Being Monitored Carefully
The report that was published further said that most of the lenders in the country had gone a step ahead in further monitoring the accounts for the various borrowers. To ensure they are aware if there are signs that the funds in the account are being used in the trade of the crypto coins in the market.
The lenders have become very concentered because the Taxation office for the country, the Treasury and also the Reserve Bank have started to crawl all over the crypto market, this is according to an anonymous broker.
And when we look into the matter a little wider, some of the major banks that are around the globe are also restricting their borrowers. This is including Citi, Bank of America, and JP Morgan Chase have also recently moved to ban users from using their credit lines to purchase the crypto coins. It is because the crypto market is very volatile, so this means the bank could run the risk of having the borrowers to default on the loans they have acquired.
The bank is not in the business to give out loans that will not be paid back, thus the need to monitor and also restrict their borrowers.