Australian exchange enlists PayPal as banks ‘close ranks’ against crypto

The CEO of Australian crypto exchange Independent Reserve says it has turned to payments giant PayPal to hedge against increasing bank restrictions against crypto exchange payments.

The exchange has partnered with PayPal to enable an on-ramp that will give Independent Reserve’s customers the ability to fund their crypto accounts directly with fiat from their PayPal wallet as well as using PayPal to withdraw funds from the crypto exchange.

Speaking to Cointelegraph, Independent Reserve CEO Adrian Przelozny said the new partnership offered Australian crypto investors extra choice, and also mitigates the future risks if the “rest of the banks really decide to close ranks against industry.”

As of today, at least five major Australian Banking institutions — Bendigo Bank, Commonwealth Bank, National Australia Bank (NAB), Westpac and ANZ — have introduced a series of limitations and blocks on customers looking to deposit and withdraw crypto from digital asset exchanges.

Commonwealth’s Banks restrictions are among the most stringent in the Australian landscape, with the institution imposing a $10,000 per month limit on all deposits to crypto exchanges. The other restrictions include blocking certain “high risk” payments and the removal of instant deposits from crypto exchanges.

Przelozny noted that this was the first example of a partnership between PayPal and a cryptocurrency exchange in the APAC region and praised the payments firm for choosing to approach the crypto sector from a positive standpoint.

“It’s really good to see a company like PayPal go against the grain and see the opportunity in the crypto industry — as opposed to what all the other banks are doing which views the industry solely as a risk,” he said.

“It’s a glass half empty versus a glass half full approach.”

Przelozny noted that there was a $5,000 deposit limit per day for funds sent to the exchange via PayPal or credit card, a far more generous limit than those imposed by some of the major banks.

Related: Australian banks claim 40% of scams ‘touch’ crypto as it defends restrictions

In a statement, Peter Cowan, the managing director of PayPal Australia, said the partnership would help decrease the limitations and complexity associated with moving funds to and from digital asset exchanges for crypto investors in Australia.

“By integrating PayPal wallet for deposits and the PayPal platform for card processing, Independent Reserve and Bitcoin.com.au are making cryptocurrency easier for investors to access, while withdrawals to the PayPal wallet can take place in real time.”

Cowan also imparted his own bullish statements on digital currencies.

“At PayPal we believe that money will become digital – it’s a matter of when, not if. Digital currencies have the potential to drive innovation in financial technology and, as a flow on, to improve economic opportunities and financial inclusion.”

On Aug. 7 PayPal announced the launch of its own U.S.Dollar-pegged stablecoin PYUSD.

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